Case Study

The Management Company was introduced to 13040 Tom White Way, a 1960’s industrial park located close to the 5 Freeway in Norwalk, CA, by a local broker with a close relationship to the family that owned the project. The Principals worked closely with family ownership to address personal issues surrounding its disposition, and resolved those challenges to complete the purchase of the asset.  The project, a typical small-bay (1,200 square foot average suite) multi-tenant park comprised of three buildings, was acquired in 2019 with rents well-below market for the Los Angeles Mid-Counties area although with a typical market capitalization rate.  Purchased at $4.9 million, the asset was repositioned with very little additional capital and sold within 13 months for $6.2 million, resulting in an extremely favorable gross IRR of 52.2%, a multiple of 1.59 on invested equity, and $1.07 million in net realized gain.