Irvine-based real estate investor Greenlaw Partners completed a significant portfolio sale of eight industrial properties in California and Utah that are leased to Amazon for its extensive distribution network.
Local brokers put a price tag of $520 million on the entire portfolio.
The block sale to a South Korean institutional investor Mirae Asset Global Investmentsis among the largest industry deals in the western United States this year and comes amid a changing landscape for e-commerce warehouses and distribution centers, and their ownership groups (see article, page 17).
The deal brings private company Greenlaw’s transportation for sales of industrial sites leased to Amazon or sold directly to the e-commerce giant worth $1 trillion (Nasdaq: AMZN) for future development to nearly $1.2 billion since last year, according to Business Journal data. and industry sources.
Commercial brokerage Newmark said earlier this month that it was working on the sale of a nearly 1.2 million square foot 100% triple-net industrial portfolio leased to Amazon from Korea’s Mirae, which has more than $230 billion in assets. assets under management.
Only six of the eight buildings traded in the $520 million deal have been identified so far; none are in Orange County.
Newmark, who worked on the four identified California properties that swapped hands as well as two properties in Utah, cited an “Orange County family office” as the seller.
Multiple sources tell The Business Journal that Greenlaw, which also invests in offices and apartments among other property types, was that seller.
The family office retains property management of the buildings after the sale to Mirae, according to Newmark.
brokerage mate Cushman and Wakefield worked on two of the Utah property sales involved in the portfolio – which sold for approximately $188 million combined – and confirmed Greenlaw’s involvement in both transactions.
The $520 million total quoted as being paid by Mirae for Greenlaw’s entire industrial portfolio equates to a price of nearly $450 per square foot on a combined basis, a price roughly comparable to that of a well-rented upscale office in pre-pandemic Orange County.
While Greenlaw often partners with institutional buyers on deals, the eight properties sold in Mirae, California and around Salt Lake City were owned solely by the Irvine company, according to real estate sources familiar with the deal.
California properties reportedly in negotiation include a 94,500 square foot facility in Bakersfield, a 112,000 square foot facility in Riverside, a 126,400 square foot facility in Victorville and a 122,156 square foot facility in Cathedral City.
All of the California properties were bought vacant and then leased to Amazon, sources say.
Cypresses, Brea site plans
In addition to the eight-building portfolio sold to Mirae, Greenlaw recently completed several other highly profitable Amazon-related property sales, including a pair of OC sites.
At Cypress, Greenlaw worked to secure Amazon as the tenant for part of the former Mitsubishi Motors America campus, before selling the site to an industrial promoter Duke Real Estate a little over a year ago.
Last November, The Business Journal was first to report that Amazon was making its biggest reported real estate purchase in OC, paying $165 million for the 30-acre office site in Brea that has long served as a call center. for Bank of America.
This site was sold – at a price of nearly $5.5 million per acre – by a venture between Greenlaw and a New York-based investment firm Cerberus Capital Management LP. Greenlaw and Cerberus paid $110 million for the site in 2014.
The Valencia Avenue facility is located north of Imperial Boulevard, adjacent to other industrial properties near the La Floresta mixed-use development. The campus was said to be the largest single-user office building leased to OC when used by BofA.
City documents indicate that the architectural firm Ware Malcomb filed preliminary plans to demolish the existing three-story, 637,503 square foot office building previously occupied by BofA and build a new 181,500 square foot warehouse “to be used as Amazon’s parcel delivery facility” .
Other recent sales of buildings leased by Amazon to Greenlaw include a $128 million deal last October in Simi Valley, one of the largest commercial real estate deals seen in the San Fernando Valley area over the past year. past year, as well as a $154 million transaction to Camarillo in March 2021.
Greenlaw still has a large industrial portfolio and is actively seeking other investment opportunities, sources told The Business Journal.