NKF Handles Costa Mesa Industrial Sale
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A single-tenant 31,424-square-foot flex industrial building in Costa Mesa, CA that is fully leased to Toyoto Racing Division traded hands. Janez Properties, Inc. sold 340 Fischer Ave. to an undisclosed 1031 tax-deferred exchange buyer. The $6.82-million sale achieved a 3.5% cap rate.
NKF’s Robert E. Griffith, who represented the seller, says, “We had 10 offers with four at the asking price, underscoring the intense investor demand for Orange County industrial properties.” Griffith notes the Orange County industrial market has an overall 2% vacancy factor, and this Costa Mesa submarket is at 1%.
“Due to a lack of supply, lease rates continue to increase dramatically. Capital is pursuing industrial product aggressively, which is demonstrated in the 3.5% cap rate we were able to achieve for this property. Looking ahead, we see no signs of this continued price appreciation changing any time in the near future. Right now there is more capital chasing industrial product than there is supply,” said Griffith.
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