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News release

BREA

Repositioning Opportunity in Southern California Drives Investment Deal

JLL closes sale of industrial park in Brea, Calif.


BREA, Calif., October 17, 2016 – JLL today announced that a repositioning opportunity in one of the tightest markets in the United States culminated in the sale of an industrial complex in Brea, Calif.. Newport Beach-based Western Realco purchased the five building, 180,087-square-foot industrial property located on 15.8 acres at 404, 423, 424, 436 and 484 Berry Street for approximately $26 million.

JLL Senior Managing Director Louis Tomaselli and JLL Senior Vice President Zach Niles represented the seller, Guardian Capital Management, in the transaction.

"The Berry Street industrial complex is located in one of Orange County's tightest submarkets with historic rent growth and near zero vacancy," said Western Realco Principal Gary Edwards. "We will begin immediately on repositioning the asset in order to satisfy demand of companies looking to expand into North Orange County."

Niles added, "Between current market conditions, the seller's long-term investment goals and the range of options the property offered to the buyer community, the timing was ideal for our client to divest of the asset." With Orange County as home to a very diverse and growing range of industrial occupiers, demand for industrial space in Orange County combined with the tremendous lack of availability has driven average asking rental rates and vacancy to the market peak reached in mid-2008.  In the third quarter, competition among industrial users pushed vacancy down 10 basis points in the third quarter to 1.1 percent with asking rents coming in at $9.12 per square foot annually. 

The Berry Street industrial complex is ideally located just minutes from three major freeways, providing convenient access to labor and housing.  The property was 100 percent leased at the time of sale but offered buyers great flexibility due to the short-term nature of the leases.

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About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $59.1 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.