Walnut Enterprise Park. Picture JLL Capital Markets
IDS Actual Property Group has obtained $69.1 million in post-close acquisition financing from MetLife Funding Administration for Walnut Enterprise Park, a 33-building mild industrial portfolio totaling 334,824 sq. toes in Walnut, Calif., in Los Angeles County.
JLL Capital Markets represented the borrower in securing the financing. The JLL Capital Markets Debt Advisory staff was led by Senior Director Matt Stewart and Analyst Chris Jaffe.
IDS, a Los Angeles-based privately held actual property proprietor, operator, developer and asset supervisor, acquired Walnut Enterprise Park, from Vogel Properties for roughly $109 million in late 2021. The acquisition of the absolutely leased, multi-tenant enterprise park was reported in early January 2022.
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Positioned on 22.6 acres on the northeast nook of Valley Boulevard and South Lemon Avenue within the fascinating infill San Gabriel Valley submarket. Walnut Enterprise Park is adjoining to CA-60 and the CA-60/CA-57 interchange, with extra connectivity to Interstates 10 and 5.
Stewart stated in a ready assertion demand for core industrial actual property stays sturdy regardless of macro headwinds. He stated the JLL staff labored with MetLife to construction a extremely bespoke financing resolution that achieved all of the sponsor’s targets. Particulars concerning the financing weren’t disclosed.
The economic market stays extremely tight, with fourth-quarter 2022 whole emptiness charges for manufacturing in addition to distribution and warehouse properties at 1.4 p.c for each the San Gabriel Valley submarket and the general Los Angeles market, in response to a JLL Industrial Perception report. In San Gabriel Valley, the emptiness fee for under warehouse and distribution properties was at 1.6 p.c, whereas for the Los Angeles market, the speed was 1.5 p.c. JLL additionally reported the economic development pipeline grew by 1.6 million sq. toes within the fourth quarter, with 80 p.c of the event going down within the San Gabriel and South Bay submarkets, the place there are extra choices to construct at scale. JLL notes demand for these submarkets stays excessive due to their proximity to the ports and entry into the Inland Empire.
IDS industrial strikes
In September, IDS secured $124 million in post-close acquisition financing for a 1.2 million-square-foot chilly storage facility at 14950 Meridian Parkway in Riverside, Calif., the place United Pure Meals Inc. is the only tenant. JLL Capital Markets organized the deal for IDS, securing the 10-year fixed-rate mortgage from Northwestern Mutual. An IDS affiliate had acquired the property in February 2022 for $225 million.
IDS acquired the Walnut Enterprise Park in late 2021 quickly after a agency affiliate offered Viva Logistics Heart II, a 547,000-square-foot, Class A logistics middle in southern San Diego to EastGroup Properties for $135 million. The 29-acre industrial park with 4 buildings was bought by IDS in 2018 from AFL-CIO Constructing Funding Belief for $67.5 million.
