JLL closes $38.5M sale-leaseback of City of Industry property
The warehouse building is in the Los Angeles Industrial market
LOS ANGELES, December 18, 2019 – JLL announced today that it has closed the $38.5 million sale-leaseback of 17708 Rowland Street, a 181,730-square-foot industrial warehouse property in an infill location near Los Angeles in the City of Industry, California.
JLL marketed the property on behalf of the seller, Newegg Inc., a leading tech-focused e-retailer in North America. On behalf of its open-end real estate fund, EverWest Real Estate Investors, LLC purchased the asset and executed a sale-leaseback with the seller for 10 years.
“EverWest is excited about acquiring another asset in City of Industry, as it is one of the most sought after and difficult to access industrial locations in the country,” said EverWest Managing Director for Southern California Erik Good.
Situated on 8.1 acres, 17708 Rowland Street is in City of Industry, a Los Angeles industrial suburb in the San Gabriel Valley region of Los Angeles County. This high barriers-to-entry location is within a distribution hub and the San Gabriel Valley Industrial submarket. 17708 Rowland Street has easy access to the SR-60, SR-57, I-10 and I-605 Freeways and is within 35 miles of Los Angeles International Airport and Ports of Los Angeles and Long Beach.
Built in 1998, the building contains best-in-class features, including a 30-foot clear height; 26,654 square feet of office space; skylights; reinforced concrete construction; ESFR sprinklers; 129-foot truck court; 26 dock doors; and two drive-in, grade-level doors. Newegg Inc. has owned and occupied the building as their corporate headquarters since September 2003.
The JLL Capital Markets team representing the seller was led by Senior Vice President Ryan Sitov and Executive Managing Directors Mark Detmer and Bo Mills.
According to a recent JLL Q3 2019 Industrial Research Report, the Los Angeles Industrial market benefits from a diverse and growing tenant base, but e-commerce, especially, continues to drive demand in a tight market that has hovered near historically low vacancy rates for years now. And the vacancy rate remains the lowest of any market in the country — despite another one million square feet of product delivering this quarter— as asking rates continue to creep up. The San Gabriel Valley Industrial submarket ties with two other LA submarkets with the lowest overall total vacancy rate of 1.7%.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Newegg Inc. is the leading tech-focused e-retailer in North America, with a global reach into more than 80 countries in Europe, Asia Pacific, Latin America and the Middle East. Founded in 2001, the company offers its more than 40 million registered customers a comprehensive selection of the latest consumer electronics, entertainment, smart home and gaming products. Newegg is consistently ranked as one of the best online shopping destinations, and the company regularly earns industry-leading customer service ratings. Newegg is headquartered in City of Industry, California, with North American distribution facilities located throughout the United States and Canada. For more information, visit newegg.com.
EverWest Real Estate Investors LLC is a vertically integrated real estate investment and operating company based in Denver, Colorado, with offices in major markets across the U.S. The company’s goal is to create value for investors through capital appreciation, strategic acquisition, development, capitalization, repositioning and management of commercial real estate assets.
EverWest is part of Great-West Lifeco’s global real estate platform, which manages approximately $27 billion in real estate assets. The global platform has expertise in open and closed end funds, separate accounts and joint ventures.
To learn more, visit: everwest.com.