Brookfield drops $46M for Santa Fe Springs business park

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
Granite CEO Michael Dardick and Industrious CEO Jamie Hodari

Industrious partners with landlords to offer tenants satellite workplaces

Industrious partners with landlords to offer tenants satellite workplaces
Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske

Northwestern Mutual picks up Santa Monica office campus for $166M

Northwestern Mutual picks up Santa Monica office campus for $166M
Prop 15 property tax measure draws millions (Credit: iStock)

Prop 15 property tax measure draws millions of dollars from for and against campaigns

Prop 15 property tax measure draws millions of dollars from for and against campaigns
California is allowing barbershops and salons to reopen under new coronavirus mitigation guidelines (Credit: Noam Galai/Getty Images)

California allows barbershops to reopen, but LA holds back

California allows barbershops to reopen, but LA holds back
LA County assessor Jeffrey Prang

LA County properties valued at nearly $2 trillion…before pandemic

LA County properties valued at nearly $2 trillion…before pandemic
First District Supervisor Hilda Solis (Credit: Rebecca Sapp/Getty Images)

LA County select reopening target date for restaurants and retailers

LA County select reopening target date for restaurants and retailers
The building at 8201 Woodley Avenue and Blackstone CEO Stephen Schwarzman (Credit: Google Maps)

Blackstone pays $83M for pair of industrial properties in Van Nuys

Blackstone pays $83M for pair of industrial properties in Van Nuys
Eric Garcetti orders a moratorium on LA commercial evictions (Photo credit: iStock photo)

Garcetti orders a moratorium on commercial evictions in LA

Garcetti orders a moratorium on commercial evictions in LA
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...