International Tea Importers Sells Commerce Properties for $17.5 Million
Two industrial properties in Commerce have sold for $17.5 million.
The properties are located at 2140 Davie Ave. and 5830 Triangle Drive.
Longpoint Realty Partners purchased the sites in a sale-leaseback transaction, where the seller immediately leases back the property from the new owner. These types of arrangements give the seller a cash infusion and the ability to remain in its current location.
Matthews Real Estate Investment Services’ Brendan Phinny and Alexander Harrold represented the seller, International Tea Importers, in this transaction.
“In the industrial world following the pandemic, we’ve seen such an unbelievable rise in prices,” Phinny said.
That increase has translated into “an unbelievable impact in value” for International Tea Importers, he said.
“(With) the amount of equity that was built up over the years of their ownership, they saw that they could inject more money back into their business though the sale of the property to grow it,” Phinny said.
Phinny described International Tea Importers’ new lease as “fairly generic” and noted that the company would remain in the building for a while.
For the buyer, Phinny said, the property was desirable because of its “highly functional industrial buildings” that have been well maintained, have great dock-high loading and large yards.
The property on Davie Avenue, he said, sits on nearly 2.3 acres and has 55% coverage, and the one on Triangle Drive sits on 1 acre and has 50% coverage.
“Everyone needs the space for trucking and both buildings provide ample room for parking,” Phinny said.
He added that L.A.’s strong industrial market means the property would be valuable to other tenants if International Tea Importers leaves, making it a relatively safe investment.
“These buildings will always be able to get leased out at a high lease rate,” Phinny said. “Any investor would look at both buildings and want to invest in it.”