Newmark[1] announces it has completed the sale of 4240 W. 190th Street, a 307,487-square-foot,multi-tenant industrial building in Torrance, California for $75 million, or $245 per square foot. The property was 100% leased to two tenants at the time of sale. Newmark Executive Managing Directors Bret Hardy, Jim Linn, Andrew Briner andScott Schumacher and Co-Head of U.S. Capital Markets Kevin Shannon represented the seller, Z/A Torrance Associates. The buyer was Rexford Industrial Realty.
“With its unsurpassed location in the highly desired South Bay industrial submarket, extremely limited industrial supply and insatiable tenant demand, this asset offered a remarkable investment opportunity,” said Hardy. “The steady in-place income stream and tremendous value-add potential further underscore the property’s desirability.”
4240 W. 190th Street totals 307,487 square feet and is situated on a 11.37-acre parcel. TheClass B building was offered as a potential rehabilitation or redevelopment opportunity given its prime location in the coveted South Bay submarket. The property offers the buyer steady income, being 100% triple net leased to two tenants with a remaining weighted average lease term of 3.9 years.
The property is situated in the heart of the South Bay, which isone of the leading industrial submarkets in the world, boastingunfettered access to six million residents within a 20-mile radius. The location is coveted for its proximity to numerous logistics and transportation hubs. These include the Ports of Los Angeles and Long Beach, thetwo busiestseaports in North America; Los Angeles International Airport, the fourth-ranked airport inthe U.S. for cargo volume;and the immediate access toInterstates 405 and 110, easily connecting to major regional freeways including Interstates 105,91 and 710.
According to Newmark Research, the Los Angeles industrial market totals 1.05 billion square feet and has the second-lowest industrial vacancy rate in the U.S., at 1.1% as of year-end. Its vacancy rate has remained below 3.0% for 39 consecutive quarters. During the fourth quarter of 2021, quarterly net absorption totaled 2.9 million square feet, bringing the 2021 absorption total to 13.7 million square feet, the fourth-highest year on record.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.5 billion for the trailing twelve months ending September 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
[1]Dba Newmark Knight Frank in California
