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Newmark has completed the $27 million sale of Monarch Industrial, a multi-tenant, 276,585-square-foot warehouse facility located in Garden Grove, CA. The property is fully occupied by four tenants including Virtu USA, New Mode Sportswear, V Factory and Riviera Beverages.
Newmark’s Capital Markets President, West Coast Kevin Shannon, Managing Director Scott Schumacher, Executive Managing Director Bret Hardy, and Executive Managing Director Jeff Read represented the seller, Colony Northstar. The buyers, Penwood Real Estate and Western Realco were self-represented.
“Industrial property throughout Orange County is seeing a healthy rise in rents and an overall vacancy that is now under 2 percent as of the end of the second quarter of 2017,” said Hardy. “Industrial investment offerings such as Monarch are scarce as both institutional and private investors seek to increase their allocations in the sector while typically retaining ownership for the long-term. As a result, the marketing process generated numerous offers. The buyer secured the fully leased asset at below replacement cost and has the opportunity to bring rents up to market rates as leases expire.”
Shannon added: “Future redevelopment upside for the asset is also possible with the ability to reconfigure the existing loading areas. Additionally, there is potential to demolish the separately parceled south portion of the building and build a new, high-clear, state-of-the-art industrial building which is in high demand given the key location and lack of available quality warehouse space in the market.”
Monarch Industrial is located at 12752 to 12822 Monarch Street, on the northeast corner of Monarch Street and Acacia Avenue, just off Garden Grove Boulevard and the 22 freeway with immediate access to the 22 freeway, and in proximity to the 405 and 605 freeways.
About Newmark
Newmark is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 14,100 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, Newmark’s strong foundation makes it one of the most trusted names in commercial real estate. Newmark’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
Newmark is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.