CBRE Facilitates $41.5 Million Sale of an Industrial Building in the San Fernando Valley

CBRE announces the sale of a 150,000-square-foot, high-image, industrial building in Chatsworth, California. Center Capital Partners, Authentic Capital Group, and TPG Angelo Gordon acquired the property from NBP Capital for $41.5 million.

CBRE National Partners’ Michael Longo and Barbara Perrier, as well as Bennett Robinson represented the buyer in the transaction.

The building, which sits on 6.68 acres at 9401 De Soto Avenue, is fully leased to two, high-quality tenants. It features 28’-31’ clear heights, 12 dock-high loading positions, six ground-level doors, 21,000 square feet of office space, and a fenced, concrete yard. The facility’s location provides convenient access to major freeways including SR-118, US-101, I-405, I-5 and I-210. Additionally, it is in proximity to the Ports of Los Angeles and Long Beach as well as Bob Hope Airport and Los Angeles International Airport.

“It’s rare to see 30-foot clear buildings trade in the San Fernando Valley,” said Mr. Longo. “Given the limited new supply, we believe this property offers a high-quality, low-risk investment, with strong in-place cash flow and immediate upside to capture income as leases roll over.”

According to CBRE research, the San Fernando Valley is one of the best-performing industrial submarkets for lease activity in the country. The area reported the highest industrial occupancy rate in Greater Los Angeles for five consecutive quarters, attributed to limited development and prime location.

The transaction is part of a larger programmatic venture between Center Capital Partners and Authentic Capital Group to acquire and scale a portfolio of high-quality core-plus to value-add industrial assets in core urban infill markets displaying the strongest supply demand fundamentals. “The rapid rise in interest rates over the past 24-months has put significant upward pressure on stabilized yields and driven down valuations, creating the opportunity to acquire assets with strong in-place cash flow at a significant discount to replacement cost, and 9401 De Soto is strong embodiment of this thesis,” said Blake Bowie of Center Capital Partners.

The property will serve as the initial investment in a joint venture between TPG Angelo Gordon and Center Capital Partners’ partnership with Authentic Capital Group, targeting industrial assets located in close proximity to the coast in Southern California. TPG Angelo Gordon is a diversified credit and real estate investing platform within TPG, a leading global alternative asset management firm.

About Center Capital Partners

Center Capital Partners LLC (“Center”) is a private equity real estate firm founded by Alex Valner and Jordan Moelis focused on the acquisition of high-quality assets in gateway, premier, and growth markets. Center’s institutional background and entrepreneurial mindset invests into thematic, and platform inspired strategies. Center implements an aggregation strategy, to build and acquire real estate portfolios supported by market fundamentals. Please visit our website at www.centercp.com.

About Authentic Capital Group

Authentic Capital Group (“ACG”) is a private real estate investment firm that focuses on sectors, markets, and assets with superior fundamentals and tailwinds. With its disciplined, fundamental value approach to investing, ACG seeks to produce attractive, risk-adjusted returns across the economic cycle while building long-lasting relationships and better communities along the way.

About TPG

TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $224 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. For more information, visit www.tpg.com.