Industrial Property Sells in 1031 Exchange

CHULA VISTA, CA-In a recent 1031exchange acquisition, Alpine Creek Investors has acquired a two-building industrial property after selling a large neighborhood shopping center. In the acquisition, Alpine Creek Investors paid $12.9 million for a 162,000-sf multi-tenant industrial building located at 2400-2402 Main Street in Chula Vista. The two buildings are 81,000 sf each with tenant space ranging from 16,5000 sf to a full 81,000 sf. The property sold for $78/sf with a 6.9% cap rate.”The investors are holding (the property) for long term appreciation,” says Ron Beck, CCIM, with the La Jolla office of Coldwell Banker Commercial. Beck, along with Tom Olson, also of Coldwell Banker, represented Alpine Creek Investors in the deal. Beck tells Globest.com that Alpine Creek came out of a 1031 exchange last August with the sale of an 80,000-sf neighborhood shopping center in the Alpine area. That property, which is anchored by Daniel’s Market and The Bread Basket Restaurant, sold for roughly $9 million, Beck tells Globest.com.The acquisition of the industrial property allowed Alpine Creek Investors an opportunity to stay in the general area, according to Beck. “The area is almost in a transition period,” Beck says, “because there’s retail knocking on the door. The area immediately surrounding the property is seeing much retail and multifamily development.”The industrial site was 100% leased at the time of sale with American Tire Distributors taking one building while Inland Paperboard & Packaging and Eurpac fill up the second building. American Tire is one of the nation’s largest distributors of tires, wheels and auto accessories and counts annual sales in excess of $1.1 billion. Inland Paperboard & Packaging is a subsidiary of Temple-Inland, one of the world’s largest producers and distributors of brown paper products, including grocery bags. Eurpac is a supplier of consumer products of consumer products for the U.S. Navy. Gary Stache and Pat Scruggs along with Preston Fetrow all of the Newport Beach office of CB Richard Ellis represented the seller, the San Francisco-based the Bristol Group. “Basically, they’re a San Francisco advisor who got out of the property at the top of the market,” Stache tells Globest.com.