The five-building San Fernando Business Center stands on 28.6 acres at Arroyo Avenue and Eighth Street, in the northeast section of the Valley. It was built in 1989 and is 100% leased.
New York-based Clarion Partners acquired the property on behalf of its Clarion Properties Lion Fund. The property was sold by a group of funds managed by CB Richard Ellis Investors LLC, the $10-billion investment-management arm of LA-based real estate services giant CB Richard Ellis.
Industrial vacancy rates in the Valley and most other parts of the county are at or below 5%, and most of the new space that's coming on-line is being snapped up quickly. "The overall Los Angeles industrial market remains strong, with reasonable vacancy rates and new supply constrained by a lack of buildable land," says Peter Stone, SVP for acquisitions at Clarion. "Given these dynamics, we're very happy to have acquired this excellent property."
Clarion was represented in-house by Stone. Jerry Norris of CB Richard Ellis represented the seller.
Clarion manages $8.5 billion in assets for institutional and private clients. Although it is perhaps best known for its holdings in New York, it has also built a fair-sized portfolio in Southern California.
A little more than a year ago, Clarion paid Boston-based AEW Capital Management $98.6 million for the 1.8-million-sf Cheli Distribution Center in Bell--one of the largest industrial sales in Southland history.
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