Newport Beach, Calif. â€“ November 12, 2020 â€“ CapRock Partners, a leading industrial real estate investment, development and third-party asset management firm, today announced it has acquired a 230,000-square-foot infill industrial property on an approximately 12.5-acre site for redevelopment in the highly sought-after San Gabriel Valley submarket.
CapRock Partners acquired the property as a sale-leaseback from an owner-tenant who will keep occupying the existing 230,000-square-foot manufacturing building in the short term. Upon expiration of the leaseback, CapRock Partners intends to demolish it to develop a new 270,000-square-foot, 36-foot clear height building featuring up to 10,000 square feet of spec office space.
â€œThis is a win-win for both buyer and seller, with the owner-tenant being able to remain on the premises while CapRock Partners works on securing permits and entitlements to redevelop the existing building,â€ said Taylor Arnett, first vice president, acquisitions at CapRock Partners. â€œThis is a rare opportunity in one of Californiaâ€™s strongest and most land-constrained submarkets and this acquisition fits perfectly into our value-add investment strategy focused on identifying and acquiring diamonds in the rough that our expert team completely reimagine and redevelop or reposition to create value.â€
Situated at 4200 W. Valley Boulevard in the city of Pomona, the propertyâ€™s location is ideal for last mile distribution users within minutes of the 57 and I-605 interchange, and I-10 and 71 freeways. These major transportation routes reach the ports of Los Angeles and Long Beach, and most of Los Angeles Countyâ€™s 10.4 million residents within a one-hour truck drive. The asset also is in close proximity to master-planned, Class A industrial business parks and is surrounded by high-quality corporate users including FedEx, Williams Sonoma, Port Logistics Group, HD Supply, Jakks Pacific, Cambro Manufacturing and AP Logistics.
Jon Pharris, president of CapRock Partners added, â€œThe San Gabriel Valley is a key trade corridor of Los Angeles, with strong demand from import businesses as well as cold storage and food users. Given the limited land availability in this infill market, we are confident in our ability to unlock value and deliver a much-needed asset that will help answer the demand for last-mile logistics facilities.â€
CapRock Partners acquired the property as part of CapRock Partners Industrial Value Add Fund III which focuses solely on the acquisition of middle market, value-add industrial properties across the Western U.S., generally valued between $20 million to $50 million. The firmâ€™s third value-add fund is oversubscribed and on track to reach its final closing by year-end at its hard cap. CapRock Partners is currently diligently pursuing value-add acquisitions and development opportunities throughout the Western U.S.
Wes Hunnicutt, Matt Moore, and Eric Tomchick of Newmark Knight Frank represented CapRock Partners and the seller in this transaction and have been retained as the leasing brokers.
The JLL Capital Markets Debt Placement team led by Senior Managing Director Greg Brown, Director Peter Thompson and Analyst Sam Godfrey, arranged the debt on behalf of CapRock Partners.
ABOUT CAPROCK PARTNERS
Founded in 2009, Newport Beach, California-based CapRock Partners is one of the leading private industrial real estate investment and development firms in the Western U.S. The company specializes in acquiring middle-market value-add industrial assets and developing large-scale institutional-quality Class A industrial warehouse facilities in key locations and provides third-party asset management services for institutional investors. CapRock Partners is registered with the U.S. Securities and Exchange Commission. The firm is actively acquiring land for development across the Western U.S. Since inception, its total investment and development pipeline exceeds 23 million square feet of industrial real estate. Follow the company on Facebook, LinkedIn, Twitter and Instagram.