Brookfield drops $46M for Santa Fe Springs business park

Sperry Equities, partner, got $190 per foot for 240K sf industrial campus

TRD LOS ANGELES /
Jan.January 16, 2019 04:00 PM
Sperry principals Rand Sperry and Burton Young with the Colonnade Business Park (Credit: Google Maps)

UPDATED, 4:11 p.m., Jan. 16: Brookfield Asset Management has bought a complex of four warehouses in Santa Fe Springs for $45.5 million, expanding its industrial footprint in Southern California.

The seller was a joint-venture between Irvine-based Sperry Equities and an unnamed family foundation local to the area, which held a split 90-10 stake in the property favoring the family, The Real Deal has learned.

The sale shakes out to roughly $190 per foot for the 240,000 square-foot Colonnade Business Park at 9720 Norwalk Boulevard.

The partnership paid no taxes on the deal, since the family foundation was a registered non-profit, according to Rand Sperry, the firm’s principal. He declined to name his partner in the deal.

In order to reap the tax benefits, the partners had to close within the next four years, having bought the property in 1997 for $13 million.

But when Brookfield approached them to make a deal, they decided not to wait.

“Three or four years from now, we could be in a recession,” Sperry said. “We’d never seen sub-five caps in Southern California” for an industrial asset, he added, referring to the low capitalization rate that Brookfield paid.

Sperry Equities’s share of the price was $4 million, while their partner took home the balance.

With four buildings, the park can accommodate multiple tenants, including general contractor MATT Construction and Kloeckner Metals, a national steel supplier and manufacturer that recently merged its Los Angeles facility into its space at Colonnade.

The facility also has some limited office space, which the Los Angeles County Sherriff’s Department leases for document storage, Sperry said.

Business parks like Colonnade are not as common in L.A. as their single-tenant counterparts, but the ones that exist command a high price. Boston Properties bought the Santa Monica Business Park for $616 million last year, paying more three times as much per foot as Brookfield did in Santa Fe Springs.

Luke McDaniel and Cameron Driscoll of JLL represented Brookfield, which confirmed the deal but declined to comment further.


Related Articles

arrow_forward_ios
Arthur Rasmussen, Jr., Senior Vice President at CBRE

Cold storage demand adds heat to sizzling industrial market

Craig Realty founder Steven Craig and 23880 Madison Street

Here are LA County’s top 5 industrial sales of May

From left: Saeed Nourmand, Michael Nourmand, Grant King and Richard Heyman

Relevant Group sues Nourmand & Associates’ founder, alleging extortion over hotel projects

Centennial founder and CEO Steven Levin with a rendering of the project

Centennial Real Estate approved for sprawling $300M mixed-use village

Apartment complex at 1435 Stanley Avenue and Raintree Partners CEO Jeffrey Allen (Credit: Apartment Finder)

Raintree Partners spends $79M on Glendale multifamily portfolio

LA Mayor Eric Garcetti

Down goes Measure EE: Property tax referendum routed at polls

CIM Group Founders, Shaul Kuba, Richard Ressler, and Avi Shemesh and 4750 Wilshire Boulevard (Credit: Google Maps)

CIM Group lists part of its Miracle Mile office campus

Arman Gabay and The Springs shopping center in Palm Springs, part of the 14-property portfolio

Charles Co. secures $215M refi for retail portfolio

arrow_forward_ios