ING Clarion Partners, LLC, a leading real estate investment advisor, has announced that it has acquired a class-A distribution warehouse facility in Fullerton, California for approx. €27 million ($39.5 mln). The transaction was made on behalf of a separate account managed by the firm. CB Richard Ellis was the broker on the transaction representing the Seller.
Located on 458 East Lambert Road in North Orange County, on the border of Los Angeles County, the 406,261-ft² warehouse facility occupies more than 18 acres of land and has excellent functionality. It is easily accessible by the region's four major freeways. The building is currently 100% leased by Q-Run Technology Company, a division of Hon-Hai Precision Industry Co. Ltd., one of the largest computer manufacturers in the world. The current rent paid by the tenant is substantially under market, thus providing significant upside when the lease expires.
"This property is well located within a solid, supply-constrained industrial market that benefits from an established tenant base, close proximity to Los Angeles and the Long Beach ports and a market vacancy under 3%," said Richard Pink, managing director at ING Clarion. "What's more, there are limited development opportunities for similar assets of this size and class in the area, making this facility that more attractive."
"More broadly, we believe the macroeconomic factors favoring industrial investments are firmly in place and that Southern California remains an attractive market for industrial properties, leading ING Clarion to continue its active investment commitment to this market," Pink added.
Source: ING Real Estate