SENTRE announces today that it has closed the $12.5 million acquisition of Azusa Center, a two-building 75,081 square foot industrial facility, fully leased to industry leader Mortech Manufacturing at its location at 301 & 411 N. Aerojet Drive in the San Gabriel Valley area of Los Angeles, California.
“Located in one of the strongest industrial submarkets in the country and fully leased through 2031 to an industry-leading tenant, Azusa Center is ideally suited to join our growing portfolio of industrial properties in infill locations throughout the Western Unites States,” said Doug Arthur, President and CEO of SENTRE.
The property was acquired from Mortech Manufacturing, an industry leader in the manufacturing and sales of mortuary equipment. The company, which has conducted its manufacturing and corporate operations at the property since 2006 (411 N. Aerojet Drive) and 2017 (301 N. Aerojet Drive), was recently acquired by a competitor in the same industry. Together, the combined entity is expected to command significant market share. Upon the closing of this real estate transaction, Mortech executed a new ten-year lease for the entire property where it will continue ongoing operations.
The 3.65-acre site is situated in one of Los Angeles’ strongest industrial submarkets, is within a 25-minute drive of Downtown Los Angeles, and is surrounded by successful companies including Northrup Grumman, HD Supply and TruGreen Lawn Care. The property supports easy ingress and egress, and features quick access to Interstate 210, a major Los Angeles transportation corridor traversed by more than 240,000 vehicles per day. As an infill location in the San Gabriel Valley submarket, the Azusa Center also enjoys among the strongest supply and demand market fundamentals in the nation, as demonstrated by the submarket’s record-low vacancy rate of 1.8% for the industrial sector.
The acquisition was sourced off-market without a broker representing either side of the transaction.
The CBRE Capital Markets Debt & Structured Finance Placement team, comprised of Executive Vice President Scott Peterson and Senior Analyst Morgon Fraser, represented SENTRE in the placement of $7.5 million fixed-rate, five-year term financing with a prominent publicly traded life insurance company.