6.1% income cap rate leased investment sold to investor in 1031 Exchange. The Lee Chang Group represented the seller, VHW Properties No 2 LLC, in the sale of the property located at 1720 E Locust in Ontario, CA. The transaction was valued at $5 million.
Through their marketing efforts, the Lee Chang Group was able to secure a buyer for the property. The buyer was in a 1031 Exchange and was attracted to the property based on the long time tenant at the property and the attractive income cap rate of 6.1%. Many investment properties in the current market are trading as low as 4% income cap rate.
Beyond Income Cap Rate
The investor was not only attracted to the property because of the income cap rate, they were also attracted to it based on the location and land size. This location is considered a prime infill location and would be a prime site for redevelopment. Land sites in Ontario are few and far between so many developers are now buying up old buildings to demolish and develop new state of the art distribution warehouses.
This property features 83,104 sq ft of metal buildings situated on 3.64 acres. The tenant, MD Barnmaster, has been the tenant in this property for over 10 years and had a lease with four years remaining. MD Barnmaster has been in business since 1975 and manufactures custom barns, horse housing, professional equestrian facilities, horse stalls and modular buildings.
Lee Chang Group specializes in seller representation services for the Inland Empire.
Light Industrial Warehouse Ontario CA
- Tenant/Buyer: T& C Exchange Accommodators, Inc. as qualified Intermediary for Transition Properties LP
- Landlord/Seller: VHW Properties No 2 LLC
- Property Type: Light Industrial
- Region: Inland Empire West
- County: San Bernardino County
- City: Ontario, CA
- Property Size: 83,104 square foot
- Clear Ceiling Height: 24ft
- Parking Spaces: 77
- Dock-High Doors/Loading: 0
- Drive In / Grade-Level Doors: 10
- Closest Freeways/Highways Exposure:Pomona Freeway (CA-60) and San Bernardino Freeway (I-10)
- Closest Ports: Port of Long Beach
- Value: $5,000,000
- Terms: sale
- NAI Capital, Lee Chang Group Agents: Richard Lee, Nicholas Chang, Justin Kuehn
- Property Address: 1720 E. Locust Street