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With its strong relationships, CapRock acquired an off-market +/-157,942 SF multi-tenant industrial park from Metropolitan Life Insurance Company. The property is located in one of Orange County’s most sought-after industrial submarkets and was eighty-eight percent (88%) leased to a variety of tenants at the time of acquisition. The property was acquired well below replacement cost. Upon acquisition, CapRock implemented a comprehensive capital expenditure program that included new landscaping, signage, parking plan, and all-new tenant improvements in vacant suites. In addition, the property had an existing condominium plan in-place which provided increased flexibility to sell individual buildings to local investors, 1031 tax-deferred exchange buyers, or individual owner-users.
As part of CapRock’s investment thesis – and based on CapRock’s success on other projects – CapRock implemented an individual owner-user and small investor exit strategy whereby approximately 50% of the project would be targeted to individual users that wanted to own their own unit, typically between 5,000 SF – 10,000 SF, CapRock’s knowledge of Orange County real estate allowed it to exploit a niche in this market and capture untapped demand for owner-users and small individual investors. CapRock continues to own and asset manage the property and both the sales prices per individual unit and velocity are exceeding expectations.
- Off-market acquisition from Metropolitan Life Insurance Company
- Strongest industrial submarket in Orange County
- Below market lease rates provided downside protection
- Acquired at well below replacement cost
- Corporate Owners include: Duke Realty (NYSE: DRE), Hines, Abu Dhabi, LBA Realty, Panattoni.