The Irvine-headquartered investment company CIP Real Estate has finalised the purchase of an industrial park in the San Gabriel Valley in Los Angeles County for USD 60.7 million. The transaction concerns the "Walnut Tech Business Center", an eleven-building facility located at Valley Boulevard and Lemon Avenue in Walnut.
The seller of the property, which boasts a total area of 200,049 square feet, was a company affiliated with AEW. The asset is 92 per cent let and accommodates 109 industrial, flex-office and service commercial units, with sizes ranging from 640 to 8,400 square feet.
Investment in modernisation and financing
CIP Real Estate plans an extensive modernisation of the industrial park. Capital investments totalling USD 3.5 million are earmarked for the current year to further enhance the attractiveness and functionality of the facility. The acquisition was financed by City National Bank, which provided USD 42.9 million according to the available property documents. JLL arranged the acquisition financing.
The Business Center is located approximately one mile from the 60 Freeway and serves the City of Industry area, where the market for small industrial units continues to be highly demand-driven. Eric Smyth, CEO of CIP Real Estate, highlighted the significance of this acquisition, stating that only a few high-quality industrial parks with small units in Southern California come up for sale each year, especially in a strategically important submarket of L.A. County.
Expansion of the industrial portfolio
This acquisition is part of a series of activities for CIP Real Estate. The company stated that it has completed industrial property transactions worth over USD 200 million in Dallas, South Florida, and Atlanta over the past 90 days. This increased the total value of its industrial portfolio to over USD 2.5 billion. In total, CIP Real Estate manages and owns real estate assets exceeding 12 million square feet.
- —CIP Real Estate was represented by its own representatives in the transaction.
- —AEW was represented by Patrick Nally, Evan Moran and Chad Solomon from JLL.
- —The purchase underscores CIP Real Estate's growth strategy in the industrial sector.
