The building is located at 2521 Palma Dr. here. The site is zoned M-2 industrial, with a yard and heavy power supply. The buyer, Bakersfield Pipe & Supply provides materials and services for industrial, refining, oil field and food processing concerns. The company is relocating its branch in Ventura to the Palma Dr. site due to an expansion of its business.
Fred Ferro and Alex Woronovich of NAI Capital Commercial represented both the seller, Palma Investors III of Ventura, and the buyer, Bakersfield Pipe & Supply.
The San Fernando Valley/Ventura County industrial market contains 162 million sf, or 15% of the total in the Los Angeles Basin. According to a first quarter 2002 report by Colliers Seely International, sales and leasing activity continued to drop in the first quarter 2002, to 1.1 million sf, down from 1.3 million sf last quarter, 2.5 million sf a year ago, and a 3.2 million sf quarterly average in 2000. Demand from the high-tech sectors remained practically non-existent.
The report states that 806,000 sf came on-line during the 1st Q 2002. In the past 12 months, 2.2 million sf has come on-line, expanding the base by a moderate 1.3%. Most of the space that came on-line in the past 12 months was in the East San Fernando Valley (+607,000 sf) and the Santa Clarita Valley (+534,000 sf).
The total vacancy rate (including sublet space) increased to 5.5%, up sharply from 4.5% last quarter and 3.7% 12 months ago. The report says this remains a generally healthy vacancy rate, down from 6.3% two years ago and rates above 10% in the early 1990s. The direct vacancy rate is only 5.2%.
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