CT SELLS SOUTHERN CALIFORNIA INDUSTRIAL BUILDINGS FOR $75 MILLION
CT has completed the sale of four Southern California industrial buildings in two transactions as the Newport Beach, Calif.-based investor focuses on its growing portfolio of logistics projects in Tier 1 markets nationwide.
CT has sold a 339,328-square-foot industrial building in northeast San Diego County for $44 million to General Atomic Aeronautical Systems, a leading manufacturer of Remotely Piloted Aircraft systems, radars and electro-optic and related mission systems solutions. The buyer plans to occupy approximately 57% of the building.
Mickey Morera, executive vice president with Kidder Mathews, and Ted Cuthbert, senior executive vice president with Colliers represented both parties in the sale.
The sale marks the completion of CT’s value add investment strategy for the building following the company’s 2015 acquisition of the project for $34 million and significant renovation of the project. CT originally purchased the project from Cohu, a company in the semiconductor industry that occupies the remaining 43 percent of the building.
Located in the Poway Business Park at 12367 Crosthwaite in Poway, Calif., the building is one of the largest in northeast San Diego County, a factor that influenced CT’s investment strategy on both the acquisition and sale of the property.
“The availability of large industrial assets for sale in the Poway submarket is scarce due to strong market fundamentals and a lack of existing product,” said Mark Belluomini, executive vice president at CT. “The opportunity to sell this property with a long-term creditworthy tenant in place and to a growing company in the immediate submarket made the sale extremely attractive.”
In a separate transaction, CT has sold three newly constructed industrial buildings for $31 million on Aerojet Avenue near the 210 Freeway in Azusa, California. CT initially acquired the underlying 8.35-acre site on Aerojet and subdivided it for the development of three state-of-the-art distribution buildings totaling 185,273 square feet and for sale to individual users.
The CBRE team of Lynn Knox, Jason Chao, Case Dahlen and Cannon Chang provided marketing expertise on the project and represented CT in the sale of the buildings. “CBRE worked hand in hand with CT throughout the process in identifying the site, developing the property, and executing the sale and marketing strategy”, said Chris Coetzee, senior vice president at CT.
These sales mark the ongoing value add investment and development strategy for CT, which is increasingly focused on the development and management of large scale logistics centers across the U.S. CT is in development on major logistics projects in Northern California, Dallas, Texas, Chicago, Illinois, Atlanta, Georgia, and New Jersey. The company has assembled land holdings sufficient to develop approximately 15 million square feet of industrial buildings over the next five to seven years.