DAUM Commercial Real Estate Services has assisted in the completion of three land transactions encompassing a total volume of $20 million and 47 acres in the Deer Valley submarket of Phoenix, Arizona.
DAUM Executive Vice President and Phoenix office Co-Branch Manager Kirk Jenkins directed the acquisition of a 28.8-acre developable land parcel on behalf of Jeff Garrett and R.T. Starr of Garrett Development Corporation. Jim Keeley of Colliers International represented the seller, JVK-VL LLC, in the transaction.
Jenkins, Keeley, and Bob Lundstedt, First Vice President at DAUM, simultaneously negotiated the sales of two portions of the same land parcel to two separate buyers. Both sales closed on the same day as the acquisition in a complex triple-escrow transaction, according to Lundstedt.
“Based on our extensive experience in the Deer Valley market and history with this specific land site, DAUM was able to secure more than 28 acres of developable land for acquisition at a highly competitive price, in the largest land transaction in Deer Valley since 2009 in both acreage and dollar volume,” explains Lundstedt. “The buyer strategically chose to immediately dispose of approximately 18.5 acres of the land in order to decrease the amount of capital investment needed upfront, as well as facilitate a smoother process as they prepare to break ground on a modern, ‘live-work-play’ mixed-use development.”
In the first sale, Lundstedt and Keeley represented Garrett as the seller in the disposition of 1.38 acres of the newly acquired 28.8-acre parcel to the buyer, Cobblestone Carwash, who was represented by Chris Stamets and Brian Gausden of Western Realty Advisors.
The second sale involved Lundstedt and Keeley representing both Garrett as the seller and the buyer, ELUX Deer Valley LP (Snowdon Residential-Harvard joint venture) in the sale of 17.15 acres of the 28.8-acre parcel for future multifamily development, which is planned to include 212 Casita Style units and a Club House, notes Lundstedt.
“The Garrett property will benefit from being across the street from the USAA campus with 4,700 employees, as well as the new Union Park at Norterra, which includes 1,100 single-family homes, 1,100 multifamily units, a school site, and specialty retail corridor,” says Lundstedt.
Jenkins notes that this highly complex transaction would not have been possible without cooperation of all parties, including the seller of the 28.8 acres, who allowed for a long escrow to facilitate the negotiations.
According to Lundstedt, DAUM has sold six land sites in Deer Valley within the last 12 months, totaling $33 million and currently controls 75 percent of the deliverable land parcels in the Deer Valley market. This was Lundstedt’s 144th land transaction in the I-17/Deer Valley market since 1997.
The land parcel involved in the three transactions is located on the Southeast corner of the intersection of Happy Valley Road and 19th Avenue in Phoenix, Arizona.
Irvine, California-based Westport Properties plans to develop a three-story, 152,000-square foot self storage facility on 2.2 acres of land in the Eastside submarket of Los Angeles.
DAUM Commercial Real Estate Services vice president James Vu and vice chairman Michael Collins represented the private seller of the parcel, who previously operated a metal and plumbing business at the location. The land sold for $5.4 million and is located at 4800-4830 Valley Boulevard in Los Angeles.
Westport Properties recently completed a self storage facility development at 2500 W. Hellman Ave, Alhambra, and is currently underway on an additional development at 1901 W. El Segundo Blvd, Compton.
Founded in 1904, DAUM Commercial Real Estate Services is a leading provider of commercial real estate services including brokerage, tenant representation, consulting, leasing, sales and property management.
Despite an intense demand for industrial space in Los Angeles, not all industrial-zoned land becomes fodder for new construction. Often, other asset classes claim the higher and better use. A rare 2.2-acre industrial land site near Downtown Los Angeles traded hands to self-storage builder Westport Properties. The firm plans to build a three-story 152,000-square-foot self-storage facility on the site, which was formerly occupied by a metal and plumbing business.
“The seller operated a family-owned business, Angelus Sheet Metal and Plumbing Supply, out of this location for over 60 years,” Michael Collins, Vice Chairman at Daum Commercial Real Estate Services, tells GlobeSt.com. “Due to market conditions, the seller decided to close the business and take advantage of the high demand in the area by offering the site for sale.” Collins represented the seller in the transaction, along with Daum VPs James Vu and Ben Spinner.
While the lad site was originally an industrial use, the surrounding market is largely residential. As a result, there is strong demand for self-storage facilities in the market. As a result, there was strong interest from several self-storage developers. “The majority of parties interested in the site were self-storage developers,” Vu tells GlobeSt.com. “The reason for this was the lack of self-storage properties in the area, which is heavily residential, as well as it being in close proximity to Downtown LA and major freeways.”
Development sites proximate to Downtown Los Angeles are rare. The seller saw the strength of the market, and decided to bring the property to market. It paid off. The property received multiple offers from a wide range of capital sources. “There was strong interest in the property from developers and institutional investors, as well as some industrial owner-users,” says Vu. “Most interested parties were all-cash buyers.”
While land sites rarely come to market, there has been an increase of redevelopment activity in this submarket. “There has been an influx of new multifamily and hotel developments in the area,” says Spinner. “There are plans for the former Lincoln Heights Jail, which is currently vacant, to be redeveloped to include a collection of commercial, office, manufacturing, live-work housing, recreation space, and rooftop space. Additionally, Xebec Building Company is constructing a brand new 200,000 square-foot, 32-foot clearance warehouse at 3301 Medford St.”
Kelsi Maree Borland
Advanced Circuits, a printed circuit board manufacturer, has signed a 10-year lease in Chandler, Ariz., where it will relocate its activities from Tempe, Ariz. DAUM Commercial Real Estate Services worked on behalf of Advanced Circuits to secure the lease.
Advanced Circuits chose to lease 48,000 square feet at 6615 W. Boston St., doubling its footprint from the previous location, where it occupied 24,000 square feet over the past 20 years. The property, owned by Invanhoé Cambridge, is a 96,000-square-foot warehouse and distribution facility, originally constructed in 1978. The building received major renovations in 2014, including a new roof, T-5 warehouse lighting, new exterior paint and an access ramp to the office component.
The warehouse also features 40- by 40-foot column spacing, 24-foot clear height, dock bumpers and levelers, dock-high and grade-level loading doors, climate control systems and 120 parking spaces, with a 110- to 175-foot deep truck court. The location offers immediate access to major thoroughfares, as Interstate 10, Loop 101 and Loop 202 are all under a 10-minute drive from the property.
“Our client was seeking to relocate from their previous Arizona location after 20 years, as part of a company expansion that will bring several jobs to the area, as well as a desire to modernize its manufacturing facilities,” Sebastian Sica, associate at DAUM’s Phoenix office, said in a prepared statement. According to him, the relocation will bring at least 150 new jobs to the area.
DAUM partnered with Advanced Circuits a year ago to secure the new location for the manufacturer. DAUM recently helped arrange a 10-year lease at Orange County Commerce Center, in Orange County, Calif., on behalf of Panattoni Development Co. and Principal Real Estate Investors.
Panattoni Development Co. and DAUM Commercial Real Estate Services have closed a 10-year lease valued at $8.65 million of a 69,882-square-foot industrial building under construction in Placentia.
The unnamed tenant is a publicly traded commercial and residential roofing distributor.
Chris Migliori and Paul Gingrich at DAUM represented Panattoni in this transaction.
The development broke ground earlier this year and includes three other buildings, ranging from 47,813 to 60,809 square feet, which are available.
The property at 721 S. Van Buren St. is expected to be completed soon. The additional three buildings that comprise the Orange County Commerce Center are located at 711 S. Van Buren St. in Placentia and 1365 & 1367 S. Van Buren St. in Anaheim.
Curtis Krusie and John van Rossem with Mohr Partners represented the tenant in this transaction.
Advanced Circuits, one of the top-three largest printed circuit board manufacturers in North America, has agreed to a 10-year lease for 48k sf of industrial space in Chandler, AZ. The lease accounts for half of a 96k sf facility, located at 6615 W. Boston St, east of I-10 and north of Hwy 202.
With this lease, the Aurora, CO-based firm is relocating from 24k sf of space in nearby Tempe, AZ – doubling its presence in the region and creating 150 new jobs.
The building features 24’ clear height, high-end office space, and dock-high and grade-level loading. Recent upgrades to the asset include a new roof, T-5 warehouse lighting, a fresh coat of exterior paint, and a new access ramp to the office space.
Sebastian Sica and Rich Sica with DAUM Commercial Real Estate Services represented Advanced Circuits in the transaction. The landlord is Montreal, Canada-based global real estate company Ivanhoé Cambridge.
An unnamed commercial/residential roofing distributor has agreed to a 10-year, $8.65 mil lease of a 69.9k sf ($1.03/sf/mo) industrial building currently under construction in Placentia. The property, located at 721 S. Van Buren St, is expected to be completed by early 2019. It is part of a four-building, 232.4k sf Class A industrial development called Orange County Commerce Center.
This is the first lease transaction completed for the Orange County Commerce Center, which is the only industrial development project under construction in the severely supply-constrained North Orange County submarket. The project is being developed by Panattoni Development Company Inc and Principal Real Estate Investors.
The new building to be occupied in this deal will feature 7k sf of high-quality, two-story office space, 30’ minimum warehouse clear height, ESFR sprinkler system, 100% site concrete throughout the auto parking and truck court areas, and a 132’ fully secured concrete truck court/yard with exceptional loading capabilities featuring seven dock-high doors and one grade-level door.
The development offers close proximity to five major freeways including Interstate 5, State Routes 91, 57, 55 and 241 Toll Road, and direct access to the Ports of Los Angeles and Long Beach. The three other buildings not yet leased that comprise the Orange County Commerce Center are located at 711 S. Van Buren St in Placentia, and 1365 and 1367 S. Van Buren St in Anaheim.
Chris Migliori and Paul Gingrich with DAUM Commercial Real Estate Services represented Panattoni and Principal in the deal. The other three buildings, ranging from 47.8k sf to 60.8k sf, are currently available for lease. Curtis Krusie and John van Rossem with Mohr Partners repped the tenant, who currently operates in over 500 locations throughout all fifty states in the United States and is further expanding its presence in Orange County.
Jacob LeBlanc, Partner at Panattoni, points out that leasing the largest building in this project before construction completion really speaks to the strong tenant demand in the 45k sf to 70k sf size range in the Orange County industrial market.
“There continues to be particularly high demand for industrial space in North Orange County, with vacancy rates posting consistently in the 1-percent-range, and asking rental rates in the county increasing 8 percent over the past year,” notes Migliori. “With this lease, the tenant has the opportunity to occupy a best-in-class industrial building with modern, in-demand amenities in a consistent and thriving market.”
Daum Commercial Real Estate Services has sold a $24.5 million portfolio of six industrial buildings, according to the Camarillo Acorn.
Mitch Conlee, executive vice president at Daum’s Ventura County office, closed the sale on behalf of Ventura-based seller Marcus Adams Properties.
The individual properties consist of a 37,204-square foot edifice at 4098 Calle Tesoro in the Flynn Road Industrial Park; the 81,172-square-foot building at 1250, 1260, and 1270 Avenida Acaso, also in the Flynn Road Industrial Park; and the 31,391-square-foot structure at 1199 and 1221 Avenida Acaso.
The half-dozen structures total 51 units and span almost 150,000 square feet in multi-tenant space. The Avenida Acaso sites were erected in the mid-1980s. The Calle Tesoro structure was built in 1995.
The industrial complex’s nearly 30 tenants include Souza Insurance, J.C. Manufacturing & Marketing, United Fabrication, American Motion Systems, All-City Computers, Horizon Baptist Church and Cloud Publishing.