NORTH HOLLYWOOD, Calif. –– Lee & Associates LA North/Ventura’s Principals Scott Caswell and Erica Balin, negotiated the sales of two multi-tenant industrial properties located in North Hollywood for a combined sale price of $21.4 million.
The portfolio includes a two-building, multi-tenant property at 6850 Vineland Avenue set on 1.49 acres, and a one building industrial property at 13401-13431 Saticoy St. in North Hollywood, with a combined building size of 66,019 square feet. 6850 Vineland Avenue was sold by Vineland Group Holdings, LLC to LaTerra Development II LLC, represented by Caswell and Balin, and 13401-13431 Saticoy St. was sold by Pine Investment Partners, LLC to 625 South Pacific Avenue, LLC., represented by Caswell and Balin. Greg Barsamian, CBRE, represented the buyer.
“These sales alone clearly show investors are placing a higher value in multi-tenant industrial buildings and see a future of continuing increases in rent,” said Caswell. “This is truly a defining moment in the valuation of multi-tenant industrial sales as the rent demand increases. We are seeing that investors are finding smaller tenant rents will only continue to climb as quality multi-tenant properties continue to be rarer to find and costlier to build.”
The North Hollywood area has seen a high demand for quality industrial investments as investors start moving away from office and retail investments. In the last quarter alone, both Caswell and Balin have sold and acquired more than $60 million in industrial investments in the San Fernando Valley and Santa Clarita areas in particular, and provided advisory services to help industrial property owners increase their property values given the high demand by willing investors. 6850 Vineland Avenue set a market record of $331 per foot, the highest amount paid to date in the San Fernando Valley for this size range.
“Quality multi-tenant industrial properties in strong, urban infill locations are rare, and we believe this asset will continue to grow in value,” said Chris Tourtellotte, of LaTerra Development II, LLC, the buyer for 6850 Vineland.
The Saticoy St. property, a 33,505 square foot industrial building in the portfolio, sold at more than $318 per foot.
“All of this shows us that these area rents will continue to climb in value as they are reinvested and as buyers are paying higher to acquire these assets, “said Balin.
The Saticoy property was refurbished in 2018 by the seller, Pine Investment Partners, LLC. “The price reflects what the market bears for a fully upgraded structure in today’s market,” said Shawn Shoushani, of Pine Investment Partners, LLC.
