Tag Archive for: Commercial Building

VOIT REAL ESTATE SERVICES REPRESENTS WOODWIND COMMERCE PARK, LLC IN THE 20,941 SQUARE-FOOT INDUSTRIAL LEASE IN HUNTINGTON BEACH, CA

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Huntington Beach, CA (September 14, 2016) – Voit Real Estate Services, a leading full-service commercial real estate provider serving the Southwestern U.S. market, is pleased to announce the completion of a 20,941 square-foot industrial lease on behalf of Woodwind Commerce Park, LLC at 7612 Woodwind Drive, Huntington Beach, CA. Mike Bouma and Eric Smith with Voit Real Estate Services represented Lessor, and Louis Tomaselli with Jones Lang LaSalle represented Lessee in this transaction.

“We are pleased to strike a deal that benefits both parties; the landlord with a long term national credit tenant that is a leader within their industry and the tenant with a desirable location for which they can continue to grow this segment of business and better serve their employees,” according to Bouma. “This deal represents the strength of the market with multiple parties competing for this Huntington Beach location.”

Nordson Corporation, an Ohio Corporation will occupy the 20,941 square-foot industrial building, which is owned by Woodwind Commerce Park, LLC. Nordson Corporation signed a 10-year lease and will move to the premises in September 2016.

About Voit Real Estate Services

Voit Real Estate Services is a privately held, broker-owned Southern California commercial real estate firm that provides strategic property solutions tailored to clients’ needs.  Throughout its 40+ year history, the firm has developed, managed and acquired more than 64 million square feet and completed more than $44.8 billion in brokerage transactions encompassing more than 43,000 brokerage deals.  Voit’s unmatched expertise in Southern California brokerage, investment advisory, financial analysis, and market research enable the firm to provide clients with forward looking strategies that create value for a wide range of assets and portfolios. Further information is available at www.voitco.com.

VOIT REAL ESTATE SERVICES DIRECTS SALE OF 136,806 SQUARE-FOOT MULTI-TENANT INDUSTRIAL/FLEX BUSINESS PARK IN INLAND EMPIRE

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RANCHO CUCAMONGA, CA, (September 9, 2016) – Voit Real Estate Services has successfully completed the sale of Arrow Business Park, a seven-building, 136,806 square-foot multi-tenant industrial/flex business park in Rancho Cucamonga.

Frank Geraci and Juan Gutierrez of Voit’s Inland Empire office and Mike Bouma of Voit’s Orange County office worked together to represent both the buyer, Focus Real Estate, and the seller, Essex Arrow LLC, in the transaction.

 “The Inland Empire is one of the strongest industrial markets in the nation,” comments Geraci. “Vacancy rates in the prime Inland Empire West submarket finished the second quarter at 3.75 percent, and average lease rates jumped to $0.56 per square-foot, surpassing pre-recession peak rental rates for the first time ever. Based on these strong market fundamentals, the Arrow Business Park is extremely well-positioned to capitalize on rising rental rates and the growing demand for quality industrial space throughout the region.”

The business park, which was sold for $15.4 million, consists of 69 units ranging from 240 to 12,650 square feet in size.

Geraci explains that no new multi-tenant industrial business parks have been built in the last 15 years in the local market, adding that high land and construction costs have significantly limited the available supply of new multi-tenant industrial product in this region.

“Demand for space in existing multi-tenant parks is at an all-time high, placing upward pressure on lease rates for this product type,” Geraci adds. “In particular, demand for smaller flex units with office build-outs is on the rise as tenants continue to seek spaces that can accommodate a vast array of corporate functions. We are now at a point in the recovery cycle where multi-tenant industrial is poised for tremendous growth, and investors are taking note.”

Located in the Rancho Cucamonga submarket, which boasts a 1.76 percent industrial vacancy, the Arrow Business Park was 76 percent occupied at acquisition, presenting an initial challenge that the Voit team was able to overcome.

“Despite the property’s prime location in a highly desirable submarket, the vacancy rate raised initial concerns among some of the prospective buyers,” says Geraci. “We knew that the property presented tremendous opportunity for value creation in the hands of an experienced owner-operator.  By emphasizing the strength of the market, the well-below replacement cost value, and the asset’s tremendous value-add potential, we were able to successfully secure a buyer that recognized the opportunity for value creation.”

Voit’s Inland Empire and Orange County offices worked together to achieve this success – an integration that is reflective of Voit’s new broker-owned platform in action, according to Geraci.

“Voit’s new structure gives every broker a personal stake in the company,” he explains.  “The knowledge that the company’s success equates directly to each broker’s success has created a renewed energy and drive that is fueling collective work among and between our brokers.  As a result, we’re able to create even better outcomes for our clients, and for ourselves.”

Geraci notes that in this case, the result was identifying a buyer that understood the property’s potential, and demonstrated surety of close.

“Focus Real Estate’s proven track record and solid financial backing enabled them to emerge as the right buyer for this asset,” he states.

Focus Real Estate acquired the property in partnership with HG Capital. Chris Bramel and Randy Bramel of Bridgeport Investments arranged the debt and assisted with the equity for the acquisition.  An acquisition loan was provided by Silvergate Bank of La Jolla.

Built in 1988, the Arrow Business Park features ample parking, 16’ to 24’ warehouse clearance ceilings, ground level loading, and a 35 percent office build-out. Located at 9047-9087 Arrow Route in Rancho Cucamonga, California, the property offers immediate access to the I-210, I-15, and I-10 for distribution and transportation.

The property’s close proximity to residential communities and extensive retail amenities such as Victoria Gardens and many local service providers make this a strong, centrally-located industrial asset that will deliver long-term value to tenants and investors, according to Geraci.

Focus Real Estate plans to upgrade the property, reposition the vacant space through a series of capital improvements, lease the vacant space, and bring rents to market upon tenant rollover in order to deliver strong risk-adjusted returns to its investors.

About Voit Real Estate Services

Voit Real Estate Services is a privately held, broker-owned Southern California commercial real estate firm that provides strategic property solutions tailored to clients’ needs. Throughout its 40+ year history, the firm has developed, managed and acquired more than 64 million square feet and completed more than $42.5 billion in brokerage transactions encompassing more than 41,000 brokerage deals. Voit’s unmatched expertise in Southern California brokerage, investment advisory, financial analysis, and market research enable the firm to provide clients with forward looking strategies that create value for a wide range of assets and portfolios. Further information is available at www.voitco.com.

12472 Edison Way: King Shocks taking over Isuzu’s Garden Grove Facility

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OCBJ No.23

By Mark Mueller | June 6, 2016

 12472 Edison Way

Garden Grove HQ

King Shocks, a Garden Grove-based maker of shock absorbers and other automotive products, has bought an industrial property in its hometown for a new, larger headquarters.

The company recently closed on the purchase of 12472 Edison Way, a 55,576-square-foot industrial facility about half a mile north of the Garden Grove (22) Freeway near Lampson Avenue.

An affiliate of Irvine-based LBA Realty sold the building for a little more than $9.4 million, or $170 per square foot. LBA acquired the property in 2012 as part of a reported $144 million portfolio deal of local industrial properties previously owned by Kilroy Realty.

The latest sale was brokered by Voit Real Estate’s Mike Bouma, Paul Caputo and Eric Smith.

The property previously served as an Isuzu Motor Co. research and development facility, housing offices, a fuel storage room, and a car wash for the automotive company.

The facilities should fit well for King Shocks, a manufacturer and servicer of custom-made automotive shock absorbers, as well as performance racing products for utility vehicles and professional racing.

“There is around a 2% vacancy rate in the area and it took almost a year to find the right building for this group,” Voit’s Caputo said in a statement.
King Shocks had been leasing a 17,500-square-foot headquarters facility on Joy Street, according to brokerage data.

How Much Runway Is Left in Orange County?

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By Carrie Rossenfeld

ORANGE COUNTY, CA—Experts in the commercial real estate industry have been warning of an imminent end to the upward cycle we’ve been experiencing since the recession and the beginning of the recovery. Opinions on just how soon it will end vary according to the market and different sectors within that market. GlobeSt.com spoke exclusively with two of Voit Real Estate Services’ Orange County-based brokers, Doug Killlian, SVP in the Irvine office, who specializes in the office market; and Mike Bouma, SVP in the Anaheim office, who specializes in industrial, to find out where this market stands in their respective sector specialties.

GlobeSt.com: How much runway do you think is left in the current commercial real estate up-cycle in your geographical market?

Killian: There are cycles in real estate that can be identified as recovery, expansion, spec development, then recession. We are definitely well into the expansion phase, in which businesses are optimistic about the future and are adding employees. The market supply begins to thin, and speculative development commences again. We are now experiencing that dynamic, and we will continue to post positive absorption well through 2016.

Bouma: I feel confident we should see continued appreciation in the Orange County industrial market for another two to three years. It is hard to predict further out, but barring any unforeseen events that could affect the national and/or global economy, I’m hopeful to see steady, yet slower, growth for the years following.

GlobeSt.com: When the cycle eventually slows again in your market, do you anticipate it to be a gradual slowdown or something more dramatic?

Killian: Recessions are not ideal, but inevitable. However, our market will be somewhat shielded from the full force, and it will be gradual. One large factor to that statement is we will not be overbuilt with large amounts of product never being occupied, and we will have a much more diversified tenant base than ever before.

Bouma: I don’t see any apparent bubbles forming in the industrial market in Orange County where we would be in for a significant downturn in the market, nor a shift in the supply curve that would result in a glut of product coming on the market, which would lead to a dramatic decline in prices or lease rates. We have a more diversified economy in Orange County this time around that is not likely to suffer from the impact of a downturn in a specific industry type, such as the mortgage-industry implosion and debt crisis that preceded the last recession and had a large impact on Orange County—or like the significant drop in oil prices is having on markets across the nation that are heavily reliant on one industry. Interest rates are also on everyone’s mind, but with the uncertainty in the national and global economies, and with inflation fears not materializing, I’m hopeful the Fed will do what they can to prevent a rapid spike in interest rates, which could have a negative effect on values if increased too quickly.

GlobeSt.com: What are the fundamentals in your market that give it strength when a down cycle hits?

Killian: Quality of life, demographics, diversified work force and lack of available land to overdevelop.  Secondly, we have a large amount of local and offshore money just waiting on the sidelines to buy up Orange County real estate.

Bouma: During the prior six years leading up to the recession, there was over 7 million square feet of new industrial product delivered in Orange County. As a comparison, there has been only 2.7 million square feet of new product delivered in the six years from 2009 to present. The Orange County industrial market ended 2015 at a 2.33% vacancy factor—the lowest ever recorded despite 2.2 million square feet of new deliveries since 2014. We have a scarcity of land to build new product, and cities such as Anaheim, Irvine, Costa Mesa, and Huntington Beach are allowing the rezoning of portions of their aging industrial markets to allow for high-density residential projects, further reducing the industrial base. These factors, combined with higher construction costs, create huge barriers-to-entry in our market.

What this means is that even if there is a downturn in demand, it is very unlikely we are going to see a related shift in supply. We have a nice buffer from where we are at now before we will see high vacancy factors leading to downward rents and property values. During the last recession, even with the debt crisis and worry that the industrial market was going to follow suit of the residential market with a flood of REOs, we saw a comparative dribble in the industrial market as lenders negotiated workouts and extensions with many commercial borrowers. We are now selling those properties at or greater-than-pre-recession pricing.  All the while, businesses weathered the storm by cutting costs in other ways, strengthening their balance sheets, gaining efficiencies, relying less on bank financing for growth and lowering their lines of credit and maintaining lower loan-to-value ratios on their properties. I think the industrial market in Orange County is generally very healthy, and the businesses within it are as well. All these factors contribute to the strength and resilience of our market.

GlobeSt.com: What else should our readers know about your market weathering cycles?

Killian: Occupancy is everything. Treating your tenants as customers will pay off in the long term; they are the key to weathering the down cycle.

Bouma: We all know that as much as Orange County is an expensive area to do business, it continues to be a great place to live and work. Local-owned businesses don’t want to make a move to lower-priced cities or states, even if it makes economic sense to do so. Proximity to where business owners live is always going to have a factor in keeping industrial businesses solidly anchored in Orange County. Great schools and universities for their families, availability of skilled labor and proximity to the ports are among the reasons that keep industrial-related businesses in Orange County. Although we have seen many of the large manufacturing businesses leave the state or country over the years in order to compete to survive, many companies still retain their headquarters in Orange County, while outsourcing to a manufacturing facility overseas or larger distribution center in areas such as the Inland Empire.

Another Successful Year for the Bouma Caputo Team

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Over $60 million in Sale & Lease consideration in 2015.

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The Big Squeeze – Feeling the Pressure of Low Inventory

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They call New York City the Big Apple and New Orleans the Big Easy. When it comes to the industrial property market, Orange County is becoming known as the Big Squeeze. Conditions are such that good value is getting harder to find, competition for space is becoming intense and prices are being forced up by the simple law of supply and demand. Vacancy is now so low, (2.6% at the end of September) that some businesses are forced to stay where they are because a better option is just not available. The result: lower transaction volume and even fewer properties to choose from. Measured in square feet, sale transaction volume in Q3 of 2015 was 47% lower than it was the same time last year. Even leasing activity is feeling the pressure, having dropped by 67% in the same period. Read more

VOIT REAL ESTATE SERVICES DIRECTS THE $10,528,000 SALE OF A 66,000 SQUARE-FOOT INDUSTRIAL BUILDING PROPERTY IN GARDEN GROVE, CA

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12621 Western

Garden Grove, CA (November 1, 2015) – Mike Bouma, Senior Vice President and Paul Caputo, Vice President, of Voit Real Estate Services’ Anaheim office successfully directed the $10,528,000 million sale of a 66,000 square-foot industrial warehouse in Garden Grove, on behalf of the buyer, The Smith Family Trust. The buyer, a distributor of educational products, will use this property to expand and consolidate the operations of their business, Teacher Created Resources, according to Bouma.  The brokerage team successfully executed a plan where they were able to locate a new facility on behalf of the buyer, after which they listed and sold their two existing building and successfully executed a complex multi-property exchange.  The brokerage team also coordinated a team of professionals to assist with the transaction and relocation, including the space planner/architect, racking consultant, and exchange accommodator.

The property is located at 12621 Western Avenue in Garden Grove, CA within the West Orange County Industrial market place.

About Voit Real Estate Services

Voit Real Estate Services is an 11 office commercial real estate firm that, through its brokerage and real estate management professionals working together, provides strategic property solutions tailored to clients’ needs.  Combining more than 40 years of expertise in brokerage, investment advisory, financial analysis, market research, real estate management and tenant advisory, Voit provides clients with forward looking strategies that create value for their assets and portfolios.

Voit is a privately held, debt-free firm that has successfully navigated numerous market cycles since 1971 and currently employs more than 250 people. Voit has owned, developed and managed over 64 million square feet of commercial real estate, participated in $1.4 billion of construction projects and completed over $42.5 billion in brokerage transaction volume.  Further information is available at www.voitco.com.

VOIT REAL ESTATE SERVICES DIRECTS THE $6,052,284 SALE OF A 41,454 SQUARE-FOOT INDUSTRIAL BUILDING IN HUNTINGTON BEACH

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Huntington Beach, CA (September 23, 2015) – Mike Bouma, Senior Vice President and Paul Caputo, Vice President of Voit Real Estate Services’ Anaheim office successfully directed the $6,052,284 million sale of a 41,454 square-foot industrial warehouse in Huntington Beach, on behalf of the Seller, a real estate partnership. The buyer, a distributor of educational supplies, will use this property for warehousing, distribution, light manufacturing and administrative office use, according to Mike Bouma and Paul Caputo.

“This is a record sale price for a second generation building in the area. It’s also an indication of where prices are headed with the lack of available buildings, high demand to purchase and continued low interest rates,” according to Mr. Caputo.

The property is located at 5422 Argosy Avenue in the desirable North Huntington Beach area. The property is adjacent to Corporate neighbors such as Boeing, Quicksilver, Cambro Mfg., C&D Aerospace, and Cleveland Golf.

About Voit Real Estate Services

Voit Real Estate Services is an 11 office commercial real estate firm that, through its brokerage and real estate management professionals working together, provides strategic property solutions tailored to clients’ needs.  Combining more than 40 years of expertise in brokerage, investment advisory, financial analysis, market research, real estate management and tenant advisory, Voit provides clients with forward looking strategies that create value for their assets and portfolios.

Voit is a privately held, debt-free firm that has successfully navigated numerous market cycles since 1971 and currently employs more than 250 people. Voit has owned, developed and managed over 64 million square feet of commercial real estate, participated in $1.4 billion of construction projects and completed over $42.5 billion in brokerage transaction volume.  Further information is available at www.voitco.com.

Wheel Maker Rolls Into Brea, Sells Surf City HQ

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BY Mark Mueller

Zadro Products Snaps Up TSW’s Old Headquarters

TSW Alloy Wheels, a manufacturer of high-end custom wheels, has sold its Huntington Beach headquarters as it gears up for a move to a larger location in Brea.

The privately held company recently completed the sale of 14462 Astronautics Drive, a 62,639-square-foot industrial building near the Huntington Beach operations of Boeing Corp.

An affiliate of another Huntington Beach based manufacturer, Zadro Products Inc., paid about $10 million for the building, according to brokers with the Irvine office of JLL who worked on the deal.

“Orange County is experiencing extremely low vacancy, which is driving up rental rates” and for sale prices, said JLL senior vice president Steve Wagner, who represented TSW Alloy Wheels in the sale.

“With strong demand and very little available product, we were able to secure market leading pricing of $160 per square foot,” he said.

The purchasing affiliate, ZZ Partners LP, was represented by Mike Bouma and Paul Caputo of Voit Real Estate Services. Zadro makes fogless and vanity mirrors and other beauty-related products.

The company currently operates out of a 41,500-square-foot facility on Argosy Avenue that’s listed for sale at $6.3 million, according to CoStar Group Inc. records.

TSW will move its operations to one of three new industrial buildings in Brea recently developed by Newport Beach-based Western Realco.

TSW purchased a 155,000-square-foot building at 3172 Nasa St., near the headquarters of Brea-based Suzuki Motor and the La Floresta mixed-use development, for an estimated $21 million.

It’s the largest of the three new buildings at the development, which totals about 365,000 square feet.

Mega Lease

Irvine-based Sares-Regis Group has found a tenant for a big industrial facility it built in the Riverside County city of Perris.

Gardena-based retailer National Stores Inc. recently signed a 10-year lease for the 579,708-square-foot distribution building. The lease is valued at $26 million, the developer said.

National Stores plans to relocate its regional distribution operations from San Diego to the facility at 3900 Indian Ave., according to Larry Lukanish, senior vice president of Sares-Regis’ commercial development division.

National Stores operates 325 shops in 22 states and Puerto Rico as Fallas Paredes, Fallas Discount stores, Fallas Kids stores and Factory 2U. The merchandiser sells brandname and private-label clothing, along with shoes and home decor.

Sares-Regis is building out 12,600 square feet of the facility as office space for National Stores, Lukanish said.

The developer announced in 2013 that it was starting the project, which sits near the former March Air Force Base. The project is located on 28.8 acres next to the 215 Freeway and is near big distribution facilities used by Whirlpool, Hanesbrands Inc., Home Depot, Lowe’s and Ross Dress for Less.

The new building has 109 dock-high doors and secured parking for 138 trailers, among other features.

Sares-Regis said in 2013 that the project would cost about $40 million.

Vegas Buy

Irvine-based apartment investor Bascom Group LLC has bought another rental complex in Las Vegas, this time for a property that caters to seniors.

The company said it paid a little under $10.4 million for Boulder Palms Senior Apartments, a 182-unit complex on the eastern edge of the city. That’s about $57,000 per unit.

Debt financing for the deal was provided by Irvine-based One West Bank, according to Bascom.

It’s “our eighth acquisition in the Las Vegas Valley in the past [20] months,” Bascom Senior Vice President Lee Nguyen said in a statement. “We are excited to continue our expansion here as the market continues to recover.”

The two-story complex, completed in 1997, covers 4 acres and is near a number of area medical facilities, according to the buyers.

Mark Mueller

Harley Davidson Finds Needle in Haystack

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March 24, 2014 | By Carrie Rossenfeld

WESTMINSTER, CA—The motorcycle manufacturer leases 41,939 square feet on a 10-year lease for showroom space at Goldenwest Circle, a location that meets the tenant’s needs for freeway frontage.

Harley Davidson of Westminster/Huntington Beach now has a showroom at 15044, 15051 and 15080 Goldenwest Circle here. The motorcycle manufacturer has signed with owner Realty Associates Fund X LP a 10-year lease valued at $3.7 million for the space, which consists of three buildings totaling 41,939 square feet.

The showroom, which provides excellent frontage on the 405 Freeway, was leased as the result of a complex transaction involving Voit Real Estate Services’ Anaheim-based brokers Mike Bouma, SVP; and Paul Caputo, VP. “Our market knowledge and years of experience were put to the test,” says Caputo.

The three adjacent buildings will allow for expansion of the showroom, service area and additional motorcycle storage while not losing freeway exposure. According to Craig Franz, president of Harley Davidson of Westminster/Huntington Beach, “The Voit brokers were able to find a freeway-frontage facility that met our very specific location and size requirements prior to the facility coming to the open market—a virtual needle in a
haystack.”

The Voit team negotiated a favorable long-term lease, coordinated and assisted with streamlining Harley Davidson’s use permits with the city and backfilled its previous facilities, with no down time. “The myriad of moving parts all came together perfectly and helped us focus solely on our move, as well as the growth of our business,” adds Franz.

Bouma recently spoke with GlobeSt.com about the Orange County industrial market, saying that overall market tightening is already well underway. Bouma noted that the tremendous amount of capital pursuing deals on both an owner/user and investor basis is driving industrial prices up substantially.

“Orange County industrial investors need to be open-minded in today’s market,” Bouma says. “A successful investor in the current market will be prepared to take on lease-up risk, down time and rollover expenses in order to be able to make a deal happen.”

Bouma also noted that tenants, too, must be flexible in today’s tight industrial market. “Industrial tenants should give themselves plenty of time in advance of their lease expiration in order to locate and negotiate on a new facility.” He added that there are simply fewer options in the market compared to three to five years ago.

Alternatively, Orange County industrial owners are now in a strong position, according to Bouma. “We are seeing much shorter lease-up time and fewer tenant concessions in today’s market; an ongoing indication that the market is quickly improving.”