Newmark Knight Frank (NKF) announced today the $28.9 million sale of a fully occupied, single-tenant light industrial/R&D building located at 2441 Michelle Drive in Tustin, CA. The 117,805-square-foot property is leased to Canon Medical Systems USA (formerly Toshiba Medical Systems) who has occupied the building since shortly after it was developed in 1983.
NKF’s Executive Managing Director Scott Read, Executive Managing Director Paul Jones, Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Bret Hardy, Managing Director Blake Bokosky and Senior Associate Brandon White represented the sellers, Everwest Holdings and Bantry Holdings. The buyer, Mitchell Company, was represented by Tom West of Lee & Associates.
The property recently underwent an extensive renovation that completed in 2018. It sits on approximately six acres and is proximate to the 5 and 55 freeways, as well as The Tustin/Irvine Marketplace, a regional shopping center with more than 122 shops and restaurants, and The District, a one-million-square-foot shopping center.
“Canon has been a tenant at this location for decades and utilizes the building for its domestic headquarters,” said Jones. “This institutional-quality asset offers the new ownership a cash-flowing net-leased facility in a high barrier to entry Orange County market.”
The Orange County industrial market continues to have an extremely low vacancy and Tustin, which is part of the Greater Airport Area submarket, is seeing vacancy rates at less than 3 percent. High barriers to entry for new construction, high construction costs and lack of available sites to develop, are all factors that keep the Orange County market in high demand from both tenants and investors.
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”) (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.