Rising Realty Partners has sold an office and industrial building in El Monte, flipping it for almost double the purchase price in 18 months.
The company sold the 249,000-square-foot complex at 9320 Telstar Avenue, according to a Wednesday announcement. CBRE brokered the deal on behalf of Rising Realty and the buyer.
Rising Realty declined to disclose the price or the buyer, but sources familiar with the deal told TRD Agoura Hills-based Majestic Asset Management bought the property for slightly more than $70 million, or about $280 per square foot. Majestic Asset Management did not respond to a request for comment, but its website shows the Telstar property as part of its portfolio.
In February 2021, Rising bought the complex for $41 million, or about $164 per square foot, from Mark and Arman Gabay’s Charles Company, according to public property records. The purchase marked Rising’s first-ever industrial purchase — since then, the firm has bought five others across three states.
When the deal closed, the firm simultaneously scored a lease renewal with L.A. County Health Services for the 163,000-square-foot office portion of the building. The county is also leasing the property’s industrial portion.
The deal suggests investors are more than willing to spend shell for office properties with industrial components, given soaring industrial rents over the last two years.
Majestic Asset Management owns more than 55 commercial and apartment properties across the L.A. area, spanning more than 3 million square feet, according to the firm’s website. In March, Majestic bought a six-building industrial complex totaling almost 200,000 square feet in Goleta for $51 million.
El Monte has become a hotspot for multifamily development and sales, rather than office trades. Southland Real Estate Group is looking to redevelop about three vacant acres in the San Gabriel Valley city into 83 apartments, while residential builder KB Home is planning to build more than 200 homes at the site of a former drive-in theater.