Newmark Completes Sale of 575,976-Square-Foot Torrance Technology Campus in Los Angeles' South Bay Market

Rhea-AI Summary

Newmark announced the successful sale of the Torrance Technology Campus, a 575,976-square-foot property located on 27 acres in Los Angeles' South Bay, for approximately $182 million. The transaction was facilitated by Kevin Shannon, Scott Schumacher, and Ken White, representing the seller, Torrance FRM LLC, while Rexford Industrial was self-represented. The campus is 90% leased to credit tenants, primarily L3Harris, which occupies 80% of the space. This acquisition highlights the demand for industrial properties in a competitive market.

Positive

• Sale of Torrance Technology Campus for $182 million boosts Newmark's portfolio.
• Property is 90% leased to credit tenants, ensuring stable cash flow.
• L3Harris's lease extension and infrastructure improvements signify long-term tenant commitment.

Negative

• None.

LOS ANGELES, Aug. 24, 2021 /PRNewswire/ -- Newmark¹ announces it has arranged the sale of Torrance Technology Campus, a five-building, 575,976-square-foot technology campus situated on 27 acres in the heart of Los Angeles' South Bay. The total consideration was approximately $182 million.

Newmark's Co-Head of U.S. Capital Markets Kevin Shannon, Senior Managing Director Scott Schumacher and Executive Managing Director Ken White represented the seller, Torrance FRM LLC. The buyer, Rexford Industrial, was self-represented.

"This 27-acre industrial-zoned parcel in Torrance provides inherent long-term value with scale that is nearly impossible to replicate in this mature infill market," said Shannon. "The tech campus also produces current long-term returns that are more than double those found in the industrial market today from an investment grade tenant."

Schumacher added, "Given the limited opportunities to acquire industrial land in the South Bay market and the recent massive run-up in land values, industrial investors and developers have increasingly sought covered-land-plays to secure opportunities like this for future redevelopment."

Located at 3100-3110 Lomita Boulevard and 3121 Skypark Drive, the property is 90 percent leased to three credit tenants. L3Harris (S&P: BBB) occupies 80 percent of the campus with additional tenants, including Torrance Memorial Medical Center and various parking tenants.

The property is located directly adjacent to the national Joint Commission accredited Torrance Memorial Medical Center and includes three interconnected buildings on 26.7 acres. In 2016, L3 Harris expanded operations and extended their lease in this mission-critical facility with over $40 million of infrastructure improvements throughout the campus.

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. Our comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, growing startups to leading companies. In 2020, Newmark generated revenues in excess of $1.9 billion. Newmark, together with London-based partner Knight Frank and independently owned licensees, operates globally from approximately 490 offices with 19,300 professionals. 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 recent sale Newmark announced?

Newmark announced the sale of the Torrance Technology Campus for approximately $182 million.

Who were the representatives for the sale of Torrance Technology Campus?

Kevin Shannon, Scott Schumacher, and Ken White represented the seller, Torrance FRM LLC.

What percentage of the Torrance Technology Campus is leased?

The Torrance Technology Campus is 90% leased to credit tenants.

What tenants occupy the Torrance Technology Campus?

L3Harris occupies 80% of the campus, along with Torrance Memorial Medical Center and parking tenants.

How much did L3Harris invest in the Torrance Technology Campus?

L3Harris made over $40 million in infrastructure improvements at the Torrance Technology Campus.