July 26, 2011
Seventh Street Development recently closed two industrial building sales, in Pomona and San Bernardino, both to local manufacturing companies. In the Pomona deal, Eden Equipment Company paid $2.2 mil for an 18.5k sf ($119/sf) building at the 462k sf Mission-71 Business Park. The fully sprinklered building features 24-foot clear heights, dock high and ground level loading, fenced yards and power service expandable to 800 amps.
Eden, a manufacturer of highly specialized filtration vessels and filter cartridges, was repped by Larry Kliger of Lawrence Allen & Associates. Seventh Street was represented by Lynn Knox & Barbara Emmons of CB Richard Ellis.
In a separate transaction, Technology Solutions & Services Incorporated (TSSI), a remanufacturer of LCD Monitors and computers for Hewlett Packard, paid $1.1 mil for a 15.2k sf ($72/sf) industrial building at the Waterman Business Center in San Bernardino. The 191k sf, master-planned development features office, flex, and industrial space and is located at Waterman Ave and Commercial Rd, immediately adjacent to the interchange of U.S Interstates 215 and 10. TSSI was represented by Grace Machado of Ken Scott Real Estate.
While these are relatively small industrial transactions, the message they are sending is important, says Seventh Street Development Principal Craig Furniss. Manufacturing and food companies, both large and small, are leading, and will lead, the economic recovery nationally and in Southern California as they gain confidence in an improving economy.
Seventh Street has only one building of 38k sf remaining at the Mission-71 Business Park and plans to start construction on the final phase of the project next year. The company is looking for commitments to purchase or lease one or more of the three approved industrial buildings, which are 40k sf, 52k sf and 119k sf in size. At the Waterman Business Center, Seventh Street still has several office and industrial units remaining for sale or lease from 2k sf to over 20k sf.
The increase in industrial demand is not a surprise to real estate firm CB Richard Ellis. CBRE’s Second Quarter, 2011 Industrial Leading Indicator Report states that the manufacturing sector continues to be a bright spot in the economy. CBRE reports manufacturing has grown faster than the overall economy for the quarter and has been adding jobs at a faster rate than most other sectors.
As further evidence that manufacturing is on the rise, next month Seventh Street will complete a 650k sf, food manufacturing plant in Irwindale for Huy Fong Foods, a leader in the Asian foods market and best known for its popular Sriracha Hot Chili Sauce . The facility will be the largest single building ever built in Irwindale.