Net Leased Industrial Investment for Sale

The Altemus Company is pleased to present the opportunity to acquire a 100% fee simple interest in 1355-61 W. 190th Street, Gardena, CA 90248. (The “Property”) The Property has a Gardena P.O. but is located within the City of Los Angeles as it pertains to Planning/Building and Safety.
The Property is comprised of two concrete tilt-up buildings totaling 92,640 square feet and divided into the 1355 Building @ 42,323 square feet and the 1361 Building @ 50,317 square feet.
Both buildings are situated on approximately 3.66 acres of LA-M2 zoned land.
Year 1 cap rate of 4.14%. Year 3 cap rate of between 5.39% and 6.15%
This property offers the rare opportunity for an investor to purchase a stabilized net leased industrial investment with 4 tenants (2 tenants in each building) thereby offering the perfect balance between the safety of a diversified tenant mix/income stream with an asset that is not overly management intensive.
Great 1031 Exchange opportunity

Tenants include AutoZone, 3 Day Suit Broker, Off Broadway West, LLC and TAP, LLC dba 4 Wheel Parts
Over 50% of the tenancy is either publicly traded (AutoZone – Traded under AZO on the NYSE) or a private large credit company (TAP, LLC dba 4 Wheel Parts has nearly 100 retail locations across the United States.

Realize tremendous future upside with contract rents that are approximately 35% below market. Current blended contract rents are equal to $1.05/sf Industrial Gross which equates to 35% below market rents (utilizing a conservative estimate of $1.65/sf Gross market rent).
In Year 3 of the investment, increase the cap rate to approximately 5.39% by increasing the 3 Day Suit Broker space to market (while realizing other contract rental increases and assuming AutoZone exercises second 5 year option to extend). Further increase cap rate to approximately 6.15% if AutoZone does not exercise second 5 year option and can replace with market rent.
Given below market rents, the property has been priced at a very competitive and substantially below market price per square foot of $259/sf.

Minimal office space with no mezzanine office.
AutoZone did build storage mezzanine which is not calculated in the square footage.
Minimum 18’ – 19’ clear height. Fire Sprinkled. Dock Hi Loading
Good parking count at 2 spaces/1,000 sf. All parking is grade level
Retailers immediately adjacent to the subject property include Wal Mart, Taco Bell, Starbucks, Extended Stay America, Carl’s Jr. and more

Located in an infill, supply constrained submarket of the South Bay (Gardena) with historically low vacancy rates of below 1%. (South Bay was reported to have a Q2 – 2022 .7% vacancy rate according to the LA Business Journal).
With little to no developable industrial land, supply constrained building materials, record high construction (material and labor) costs and delayed entitlement timelines, the vacancy rates are likely to remain historically low for the foreseeable future.
The property is located immediately adjacent to the 405 Freeway at the Normandie 405 South off ramp offering approximately 400 feet of superb freeway identity along the heavily travelled 405 freeway. Property also offers approximately 500 feet of frontage along 190th Street.
Superb visibility/frontage allows property to be used for retail/quasi-retail or wholesale to the public uses.