19 months after purchasing the industrial real estate property for $1.8M, Manhattan West completes extensive value-add project and sells the newly-renovated asset
Manhattan West, a global strategic investment firm, today announced that its Real Estate Group has sold an industrial property totaling 14,400 square feet that consists of two individual buildings with four individual 3,600 square foot suites. As a vertically integrated owner, operator, and manager of commercial real estate, Manhattan West’s unique approach enables the firm to provide maximum value in its commercial real estate investments.
Situated in the highly desirable South Bay sub-market, the property benefits from easy access to Los Angeles International Airport and Long Beach Airport. Located one mile from the I-110 freeway, tenants have convenient access to both the Port of Los Angeles and the Port of Long Beach.
“While most buyers were deterred by the extensive structural improvements required, our ground-up development experience allowed us to quickly quantify this risk and get comfortable with the investment,” said Adam Norvell, Managing Director of Real Estate at Manhattan West. “In the end, we were able to fully execute our business plan under budget and ahead of schedule, while delivering above pro forma rents.”
Manhattan West acquired the asset in February of 2020 for $1.8M and closed the sale on December 7th for $4M after four months of extensive value add renovations, including significant structural improvements, interior/exterior paint, a new roof system with a 20-year warranty, new skylights and LED fixtures, renovated individual offices and restrooms, landscaping updates, and secured fencing. The company retained LA Commercial and worked with associates Albert Pacleb and Joshua Schwartz to market and properly identify a diversified tenant mix for the portfolio. By June of 2021, the asset was fully leased and stabilized with new NNN leases in place.
Manhattan West prides itself on taking an institutional and sophisticated approach to investing, while remaining nimble and entrepreneurial to provide value to its investors. The firm is actively seeking industrial value-add and opportunistic development opportunities in the $5M – $30M range, with a primary focus on Southern California.
About Manhattan West Real Estate
The Manhattan West Real Estate Group is a community-focused real estate team uniquely positioned as an owner, operator and manager of multifamily and industrial properties and has sought to add value to the communities it operates in and positively impact the tenants and residents of its buildings. Since inception, the group has focused on targeting value-add and core plus assets.