A rare Sun Valley development site situated on 6.9 acres has sold for $40 million.
The buyer, Epicenter Landcorp, has acquired the 11660 Tuxford St. asset, marking the completion of the group’s third real estate investment in the last 12 months.
“A meaningful purchase price reduction, seller financing on desirable terms, and the assembly of a 13-acre industrial property in the middle of Sun Valley made the acquisition of 11660 Tuxford very attractive,” Vasco Noya di Lannoy, chief investment of Epicenter Landcorp, said in a statement.
Colliers’ North Los Angeles industrial agents David Harding, Greg Geraci, Matt Dierckman and Billy Walk brokered the deal on behalf of the buyer. Raines Feldman LLP facilitated legal considerations for Epicenter in the transaction. Brad Luster of Major Properties represented the undisclosed seller.
The site’s features include 300,900 square feet of land with 73,000 square feet of building space, LA M1 zoning with land use for warehouse and light industrial and a secure gated lot.
“The 11660 Tuxford St. site presents a rare opportunity for Epicenter Landcorp to expand their portfolio in a vibrant industrial market,” Harding said. “Not only is the property ready to be leased in an active market with a 0.5% vacancy rate, but it also provides the potential for future development, making it truly a one-of-a-kind investment.”
The Sun Valley property stands in the tight submarket of East San Fernando Valley, which saw 0.6% vacancy in the fourth quarter of last year, compared to the same vacancy in the overall San Fernando Valley and 0.9% in Los Angeles County, according to Colliers data. Asking rent for industrial buildings in East San Fernando Valley held at $1.71 a square foot — the same rate as the greater San Fernando Valley — while Los Angeles asking rent was $1.80 in the fourth quarter. While the asking rent in the East San Fernando Valley was flat with the third quarter of last year, it was up from $1.55 in the first quarter of last year and $1.64 in the second quarter.
Colliers has been busy. The brokerage announced on Feb. 7 that it recruited a longtime CBRE Group Inc. capital markets broker in greater Los Angeles, naming Sterling Champ as executive vice president for Colliers in Glendale.
Champ specializes in corporate capital markets, sale-leaseback, build-to-suit, acquisition and disposition deals as well as lease accounting, deal structuring and strategy services. He has transacted deals totaling more than $8 billion in value since starting in real estate in the 1980s. His clients have included high-profile firms including MetLife, New York Life and Goldman Sachs as well as the California State Teachers’ Retirement System. He also helped form the net-lease property group at CBRE, according to the company.
Champ started in the real estate industry working for Vantage Cos. in New Jersey in the 1980s. After the firm experienced financial problems, Champ and another partner bought the business and started the management and leasing company Bridgewood Properties. Bridgewood was sold to Koll Real Estate Services, which CBRE acquired in 1997. Two years later, Champ relocated to Los Angeles to work for LoopNet and in 2001, Champ moved over to CBRE, where he had been working until the Colliers hire.
“Our momentum of attracting world-class talent continues with the addition of Sterling to our business,” Jodie Poirier, executive managing director and greater Los Angeles market leader at Colliers, said in a statement. “Sterling’s corporate capital markets expertise will add immediate value to our greater Los Angeles business, including our growing private equity practice.”