Dunleer has flipped a North Hollywood industrial park for $10.4 million after just more than a year of ownership.
The Los Angeles-based investment and development firm sold the 38-unit complex at 7361 Ethel Avenue to a private buyer based in Southern California, according to the San Fernando Valley Business Journal. Dunleer purchased the property on undisclosed terms last September.
The complex was built in 1970 and totals about 30,000 square feet across 1.5 acres. The 38 units range from between 600 to 1,000 square feet.
Dunleer founder B.J. Turner said the firm repositioned the property and said “new ownership will have the opportunity to further mark leases up to market as they expire and realize future appreciation.”
“We overhauled the interior of the units and cosmetically redesigned the exterior as well as adding security fencing, concrete trash enclosures, exterior security lighting and new monument signage,” he said.
Late last month, Dunleer purchased a San Gabriel Valley industrial property from McGuire Industries for $10.6 million. Dunleer plans to similarly renovate the 115,000-square-foot Temple City complex and upgrade security.
The firm also invests in Arizona, Nevada, Utah, Idaho and Texas.
Los Angeles’ industrial market is as tight as it’s ever been, thanks in large part to demand from e-commerce tenants. Investors are scrambling to get in the mix and spent $2.8 billion trading properties in L.A. from January through August, the most of any market in the nation.
The San Fernando Valley is among the tightest markets L.A. with a vacancy of around 1 percent.
The wider national market is similarly tight. The 159 million square feet of net absorption in the third quarter was the highest quarterly total in the U.S. since 2008.
The 12 months ending with the third quarter was the first time ever that net absorption topped half a billion square feet over a yearlong period. That helped push nationwide vacancy down to 4.7 percent.
[SFVBJ] — Dennis Lynch