Industrial Lease, Sale Talley 327,000 SF

[IMGCAP(1)]SANTA FE SPRINGS, CA-An industrial tenant has signed a 261,910-square-foot lease renewal that is among the largest Mid-Counties transactions in 2009, and a buyer has paid $5.9 million for a 65,569-square-foot industrial building in a sale that ranks among the highest per square foot in the submarket for properties of 50,000 square feet and larger. The lease is for three buildings at 10810 and 10900 Painter Ave. and 11600 Los Nietos Rd. that are occupied by packaging firm Tharco; the building that sold is at 14722 Anson Ave.

[IMGCAP(2)]The Tharco deal represents one of the largest spaces leased in the Mid-Counties in 2009, according to Adam Deierling, vice president in Colliers International’s Torrance office, who represented the tenant in the transaction, along with Chris Ehrlich, Mark Latimer and Mark Baranick of CB Richard Ellis. “We were hired by Tharco prior the existing lease expiration to secure better renewal terms than those proposed by the landlord,” Deierling says. He says the leasing team negotiated better rental rates and offset some maintenance obligations for a significant combined savings in excess of $700,000.

San Lorenzo, CA-based Tharco plans to occupy the buildings for the manufacturing and distribution of it packaging products for the duration of the 40-month lease, which expires in March 2013. Bill Napier of Told Partners represented the landlord of 10810 and 10900 Painter Ave. The landlord at 11600 Los Nietos Road was unrepresented.

In the 14722 Anson Ave. deal, heavy-duty automotive engine parts and components provider US Motor Works bought the 65,569-square-foot building from the Carson Cos. of Carson in order to consolidate from three separate facilities into one, according to Chris Sheehan, senior vice president in the Torrance office of Colliers, who represented the buyer along with Deierling and associate Michael Grady of the Colliers Torrance office. The sale marks the highest price per square foot for a property totaling more than 50,000 square feet in 2009 in all of the Mid-Cities industrial market, according to brokers from Voit Real Estate Services who represented the seller. The Voit team included senior vice presidents Cameron Driscoll and Luke McDaniel of Voit’s Anaheim Metro office.

Driscoll notes that two offers were made on the property as soon as it was brought to the market, and Voit negotiated three options to extend the escrow to give the seller additional time to locate an exchange property. According to Sheehan of Colliers, the property provides the space necessary for US Motor Works to consolidate and also allows for more efficient operations. US Motor plans to use the facility as a warehousing, light manufacturing and distribution center for its products, he adds.