Jim Biondi of Grubb & Ellis tells GlobeSt.com that Apex will use the building for warehousing and distribution operations and expects to move in before the end of the year. Biondi, Terry Reitz and Gerald Kim of Grubb & Ellis represented the seller, while Phil Walsh of Prism Financial Services represented the buyer.
Apex is an importer and distributor of consumer electronics products from Asia and will use the new facility for operations that it formerly contracted with through a third-party logistics firm.
The company will keep its Ontario operations after it opens the Rancho Dominguez facility, wanted a distribution facility close to the Los Angeles ports, Biondi tells GlobeSt.com.
Although demand for small owner-user industrial buildings is especially strong, Biondi says it is "somewhat unusual" for an owner-user to buy a building this large because U.S. corporations that might be users of such large spaces typically have a policy of leasing rather than owning their facilities.
But Asian firms like Apex and many entrepreneurial U.S. companies find ownership more appealing, especially in light of today's low interest rates, Biondi says. He says some of the larger, entrepreneurial U.S. companies that previously had a policy of not owning real estate appear to be reconsidering those policies in light of the historically low interest rates.
Kennedy Associates acquired the Rancho Dominguez building about five years ago, when it was occupied by a tenant who later moved out. The building was empty at the time of sale.
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