CBRE Brokered Sale of 231,000+ SF Two-Building Office/Flex Property in Chatsworth, Calif. to Rexford for $42 Million

CBRE brokered the $42 million sale of a 231,769 sq. ft. flex/office campus within Chatsworth Business Park in Chatsworth, Calif. to Rexford Industrial. The property sold at the equivalent of $106 per land square foot.

Mark Shaffer, Mike Longo, Anthony DeLorenzo, Todd Tydlaska, Sean Sullivan, Matt Heyn and Bennett Robinson of CBRE represented the seller, a national real estate investment and management company, in this off-market transaction.

The two-building low-rise campus is located at 21415 – 21615 Plummer St. Both properties are situated on 9.1 acres of industrial-zoned land and are 85 percent leased to two tenants, including the County of Los Angeles, which has been at the property since 2000.

Upon lease expirations, Rexford intends to redevelop the site by removing the existing office structures and constructing two Class A, 32-foot-clear warehouse buildings, totaling 182,000 square feet.

“Strong demand for Class A industrial space is creating a unique opportunity to redevelop low-rise office-to-industrial infill locations,” said Shaffer.

Added Longo, “The strong in-place income from the existing office tenants and the ability to repurpose the site to industrial should the office tenants leave, offered a compelling opportunity for Rexford to expand their presence in the San Fernando Valley.”

The unprecedented demand for infill warehouse distribution space coupled with the accelerated rent growth for Class A warehouse distribution space is creating an opportunity for investor to redevelop low-rise surface-parked suburban office buildings to state-of-the-art industrial in infill locations, according to CBRE research.