Multi-Tenant Industrial Sells for $730,000

NORWALK, CA-Thomas and Pamela Clements have purchased the 11,520-sf multi-tenant industrial building located here. The property was sold by Austin Family, LLC. The transaction is valued at $730,000.

The building is located at 14504 Carmenita Rd. It has five local small-business tenants who rent on a month-to-month basis. They lease space ranging from about 14,000 sf to 28,000 sf. The industrial site is currently 100% leased.

The investment play on this deal is to renovate the site, including putting in a new roof, to increase rents that are now below market level. The capitalization rate on the deal was about 8%, but with the rehab deal it could increase to 9%. The ground-level building is mostly warehousing space with minimal office.

The seller, Austin Family, LLC was represented by Jeff Bethel of Lee & Associates. The buyers were represented by Mike DiPeppino of Voit Commercial Brokerage.