Seventh Street Development Sells New 22,135 SF Industrial Building In Pomona To Maxxsel Apparel

FOR IMMEDIATE RELEASE  

POMONA, CA (July 19, 2010) – Seventh Street Development and CB Richard Ellis announced the sale of a 22,135 square foot industrial building at the Mission-71 Business Park to Maxxsel Apparel.  The buyer, represented by CBRE’s Kevin Herron, purchased the brand new building for approximately $2.7 million.  Located at 1613 W. 2nd Street in Pomona along the 71 freeway, the new, high-image building includes two-story offices, dock high loading & 24’ ceilings. CBRE’s Lynn Knox, Barbara Emmons, John Privett and Lyn Eisenhower represented the sellers, Long Beach-based Seventh Street Development in the sale.

 The buyer, a wholesale company for leather apparel, jackets and shirts, had been looking to lease a smaller building than the one they currently occupy in Baldwin Park, but ultimately decided that by purchasing a building at a time when record low pricing and low financing rates were available through SBA, they could achieve a mortgage payment below what they would be paying on a lease, according to Herron.

 “At this point in the market cycle, we’re seeing more companies buying instead of leasing to take advantage of values created in the recent recession,” said Mr. Herron.  “The availability of aggressive SBA financing is helping to bolster this segment of the market.”

 With the most recent sale to Maxxsel Apparel, Seventh Street Development has sold nine of the eleven buildings at the Mission-71 Business Park, bringing the project’s first phase to near close-out. Other recent buyers in the business park include Dawson Company, a manufacturer and distributor of residential, commercial and industrial plumbing, heating and cooling equipment; Excellence Opto Inc., a  company that makes light-emitting diode lamps for traffic lights and street lights; and Martin Purefoods Corporation, which specializes in the distribution of Filipino food products. 

“With only 2 buildings remaining in the first phase, we have little competition for users looking to buy new, existing construction.  Activity for our project has definitely increased and we are already getting interest in Phase II,” said Lynn Knox of CBRE.

 Phase II of the Mission-71 Business Park has been approved by the City of Pomona and will offer 1,500 lineal feet of freeway frontage on the 71 Freeway, just north of Mission Boulevard. The second phase will consist of three separate buildings of 42,000, 51,000 and 120,000 square feet. Each will feature state-of-the-art industrial building design including up to 30-foot clear heights, fenced yards, ESFR sprinkler systems, excess parking, and build-to-suit, two-story office components. The buildings will be offered for sale or lease and can be delivered within 12 months of a commitment.  More information on Mission-71 can be obtained by visiting www.cbre.com\mission-71.

 Seventh Street Development completed construction on Phase I of the Mission 71-Business Park in late 2007.  Equity financing for both phases at Mission-71 has been provided by the Genesis Real Estate Fund II.

About Seventh Street Development

Seventh Street Development is a privately held real estate development company. The firm benefits from a unique mix of institutional financial strength and discipline coupled with implementation by hands-on, experienced entrepreneurs. The principals, Craig Furniss and Doug Hinchliffe, have 67 years of broad development experience and are personally engaged in each project. Their financial partners and project team members are among the most respected in the business. Seventh Street prides itself on its reputation for personal integrity, fast action, and creative and flexible transaction structures.

Named after the historic Seventh Street Produce Market in Downtown Los Angeles, where the two principals first met, Seventh Street Development has a well-defined and focused business strategy of developing infill commercial properties within Southern California markets.

 About Genesis Real Estate Fund II

The $104 million Genesis Real Estate Fund II is managed by Shamrock Capital Advisors, Inc., an affiliate of Shamrock Holdings, the investment arm of the Roy E. Disney family.  The Genesis Real Estate Fund II provides gap financing to developers in the form of equity, preferred equity or mezzanine debt on industrial, retail, commercial and mixed use projects that benefit low or moderate income communities in Southern California.  Investors in the Genesis Fund include major banks and insurance companies along with a significant co-investment by Shamrock affiliates.

About CB Richard Ellis

CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2009 revenue).  The Company has approximately 29,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company for three years in a row. Please visit our Web site at www.cbre.com.

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Posted July 19, 2010 by jcowan in News