Newmark Arranges $147.5 Million Sale of Industrial Distribution Project - North County Corporate Center - in San Diego, California

Rhea-AI Summary

Newmark has successfully facilitated the sale of the North County Corporate Center (NCCC) in Vista, California, for $147.5 million. This industrial campus spans 493,898 square feet and is fully occupied by six credit tenants. The property features modern amenities, including 26-foot clearances and abundant loading facilities. With a strong cash flow and below-market rents, NCCC presents an attractive investment for Black Creek Group. The San Diego market showcases strong industrial demand, reflecting eleven years of positive absorption and a 4.5% vacancy rate, indicating strong future rent potential.

Positive

• Sale of North County Corporate Center for $147.5 million indicates strong market demand.
• Property is 100% occupied, providing solid cash flow from diverse tenants.
• Below-market rents and forecasted rent growth present an attractive investment opportunity.

Negative

• None.

SAN DIEGO, Oct. 8, 2021 /PRNewswire/ -- Newmark¹ announces it has arranged the sale of North County Corporate Center ("NCCC"), a five-building, 493,898-square-foot, institutional-quality industrial campus in Vista, California.

Newmark Executive Managing Directors Bret Hardy, Jim Linn, Andrew Briner and Brunson Howard and Co-Head of U.S. Capital Markets Kevin Shannon represented the seller, Barings, one of the world's leading investment managers. The buyer was Black Creek Group.

NCCC is widely known as North San Diego County's largest pure industrial distribution project, and is situated in a distinctive, high-image business park environment. The property presents market-functional modern building features, including 26-foot clearances, ESFR and ESFR-ready sprinkler systems, abundant dock-high loading, large truck yards and modern offices.

"North County Corporate Center is the largest pure industrial distribution park in North County San Diego. The property is 100% occupied, and offers solid, in-place cash flow from a diverse rent roll with six credit tenants and staggered lease expirations," said Hardy. "Additionally, below market rents and forecasted hyper-inflationary industrial rent growth make this project an ideal core-plus investment for Black Creek Group."

The project is designed to cater to a wide variety of unit sizes, tenants, and uses with suites ranging in size from approximately 21,000 to 123,000 square feet, and buildings ranging from 71,464 to 123,270 square feet. This range of suite and building sizes enables both single- and multi-tenant occupancy and allows tenants to grow within the park.

San Diego's North County market counts a population of 4.5 million within 50 miles, and provides ease of access to greater San Diego, Orange County, Los Angeles and the Inland Empire via the I-5, I-15 and SR 78 freeways.

San Diego County encompasses over 165 million square feet of industrial inventory with a 4.5% vacancy rate as of Q2 2021, according to Newmark Research. The market has experienced eleven straight years of positive absorption. Rents are forecasted to continue to increase as competition for new and existing industrial space heats up.

About Newmark

Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.2 billion for the trailing twelve months ending June 30, 2021. Newmark's company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark. 

Discussion of Forward-Looking Statements about Newmark

Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

¹dba Newmark Knight Frank in California

 

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SOURCE Newmark Group, Inc.

FAQ

What is the value of the North County Corporate Center sale by Newmark?

Newmark arranged the sale of the North County Corporate Center for $147.5 million.

Who was the buyer of the North County Corporate Center in San Diego?

The buyer of the North County Corporate Center was Black Creek Group.

What are the key features of the North County Corporate Center?

The North County Corporate Center features modern industrial amenities, including 26-foot clearances, abundant dock-high loading, and is 100% occupied.

How does the San Diego industrial market perform?

As of Q2 2021, the San Diego industrial market has a 4.5% vacancy rate and has experienced eleven years of positive absorption.

What type of investment is the North County Corporate Center considered?

The North County Corporate Center is considered an ideal core-plus investment due to its strong cash flow and below-market rents.