SANTA CLARITA, CA—American Realty Capital Global Trust has purchased the lab and office facility occupied by Quest Diagnostics, one of the largest biomedical companies in the US, for $96 million from Clarion Partners. Located at 7027 Tourney Road in Santa Clarita, CA, the 226,000-square-foot property sits on 14 acres with direct access to the 5 freeway.

“Clarion originally purchased the property in approximately 2004, and at the time they planned a five to 10-year hold,” Mike McCann, managing director at HFF, tells GlobeSt.com. “Combining this with the current favorable real estate capital markets and with the lease having approximately 10 years of remaining original lease term, it made sense for Clarion to sell this property now.” McCann represented Clarion Partners in the sale of the property along with HFF managing director Ryan Gallagher, director Andrew Harper and associate director Nick Foster.

According to McCann, the sale drew strong interest from local investors. “Many dozens of investors evaluated the opportunity and we received multiple offers,” he says, adding, “we did not specify an asking price, but ultimate pricing met our expectations.”  

Ultimately, the tenant was among the main drivers of interest, according to McCann, who explains, “The tenant's credit quality, the investment's yield over the remaining lease term, the strategic importance of this lab/office facility to the tenant, and the great location within Los Angeles County all contributed to the very strong interest by prospective investors.” The great location to which he refers includes a master-planned community in Valencia, which McCann says will provides the “tenant's employees with a relatively high quality of life.”

The Valencia area is strong across property sectors. In November, developer IAC broke ground on a 1.3-million-square-foot industrial facility called the IAC Commerce Center. The construction project will be completed in three phases. The first phase, underway now, is a 400,000-square-foot building on 70 acres.