A 40+ year old 216,000 SF manufacturing building located on 10 acres was occupied continuously as a plastic packaging manufacturing facility since its original construction in 1969 until November 2011 when the current lease expired. It had significant deferred maintenance throughout and existing environmental conditions that required soil remediation.
The property was purchased all-cash by our firm in a joint venture with an institutional investor in an off-market transaction from a family trust that wanted to avoid potential downtime and significant rehabilitation costs if the current occupant vacated. A pollution and legal liability policy in the amount of $10 million was secured at the closing. Our principals coordinated the close out of the RWQCB remedial action plan and was issued a no further action (NFA) letter in August 2012. The $2.5+ million rehabilitation work on the property included installing a new roof system with skylights, upgrading the fire sprinkler system throughout the warehouse, installing energy efficient T-5 lighting in the warehouse, extensive warehouse floor repairs, redesign and refresh of the office space, and removal and replacement of significant portions of the asphalt and concrete paving.
Complete rehabilitation converted the dated building to a modern distribution warehouse attractive to owner-users in the San Gabriel Valley industrial market. The revitalized property featured cross dock loading, large truck yards and rail service which were very unique features for a property of this size and age in an infill industrial market. The property was sold to a food distributor only four months after completion.