Duke Realty has purchased the Northpoint Commerce Industrial Park Portfolio, a two-building, 119,431-square-foot set of class-A industrial assets in Fullerton, California, for $22.8 million from a private seller that was advised by MidPacific Asset Advisors. With an A-plus location, the properties consist of the two buildings at 500 and 700 Burning Tree Road situated on nearly 7.5 acres within the 47-acre master-planned Northpoint Commerce Center in North Orange County.
500 Burning Tree Road consists of a single-story warehouse/distribution building with partial two-story office space, totaling 61,726 square feet on 4.55 acres. 700 Burning Tree Road consists of a single-story warehouse/distribution building totaling 57,705 square feet on 2.87 acres.
Jeff Chiate, Rick Ellison, Mike Adey, Jeffrey Cole, and Ed Hernandez of Cushman & Wakefield’s Capital Markets services in Orange County represented the seller in the transaction. Randy Ellison also of the firm’s local office provided market advisory.
“The portfolio boasts one of the top logistical locations in Southern California, bordering Los Angeles and Orange counties, ideal for last mile e-commerce distribution,” says Chiate.
The buildings are 100 percent leased to Iron Mountain and Sunrise Produce, which each have several years of term remaining on their respective facilities, according to Chiate. Iron Mountain has occupied its facility since it was built in 1991 and owns the adjacent building, while Sunrise Produce signed a long-term deal in 2015 and “has invested significant capital into the building,” he adds.
The properties provide direct access to all major freeways via the I-5 and SR-91, both less than three miles away. Also, the Ports of Long Beach and Los Angeles is situated only 25 minutes to the west of the properties.
According to latest market research from Cushman & Wakefield, the Fullerton industrial submarket reported a vacancy of just 0.8 percent in the first quarter of 2018, one of the lowest levels countywide. The submarket was also the strongest occupancy growth area in the county to start 2018, with 166,000 square feet of net absorption in the first quarter.