Eric R. Smith
Orange County Industrial Investment Opportunity
Voit Real Estate Services, as exclusive advisor, is pleased to present for sale Industry Street Industrial Park located at 12241-12271 and 12311-12321 Industry Street, Garden Grove, CA.
The offering is a 45,533 square foot multi-tenant industrial park situated in two buildings on 2.4 acres of land. The property is truly unique in its value-add potential; the 100% leased investment offers immediate cash flow with below market rents that can be substantially increased. In addition, the size and configuration of the units creates a good potential fit to convert leased units into condominiums and be sold off individually to achieve a premium return in the future.
Below Replacement Cost – Priced significantly below the estimated replacement cost highlights the retention of value available at this property. Furthermore, high construction costs and scarcity of land create significant barriers to entry, making the property virtually irreplaceable.
Historically High Occupancy – This property has historically had very strong tenant retention. It's desirable features are attractive to the majority of industrial tenants in this size range, thereby minimizing tenanting costs on rollover.
Desirable Unit Features – This submarket has seen an overwhelming demand for 5,000 to 15,000 sf units. This property offers several, if not all, of the features that a tenant desires: excellent warehouse clearance, fenced yards, and dock high loading.
Prime West Orange County Location – Excellent freeway access to the 405, 22and 605 freeways makes the property easily accessible for employees and to major transportation/shipment hubs. The property is approximately 20 miles from the Port of Long Beach and Los Angeles. It is also 12 miles from Long Beach Airport and 15 miles from John Wayne Airport.
Strong Market Dynamics – Vacancy in Orange County for the 2nd Quarter 2015 is 2.95%, the lowest in 20 years. Lease rates grew 4.84% from last year’s 2nd Quarter and correspondingly are set up for continued apprecation. The West Orange County submarket has an extremely low vacancy factor of 2.4% and an even lower average competitive business park vacancy of 1%.