In February of this year, we were hired by the sellers of a leased industrial building in Santa Ana to perform a 1031-exchange and reposition the equity to do better. The property consists of a 12,070 square foot building on over a 20,000 square foot lot, about 10 minutes from John Wayne Airport (SNA).
Immediately after listing the property shockwaves in the market were felt by FMOC dramatic interest rise of March 2022.
The residual effects were felt as experienced investors clutched their pearls in hopes that the next scheduled rate increase would not be as drastic as the last.
Fortunately for our seller, they stayed focused and found it beneficial to meet the market. As we saw a sensitivity to pricing on the sale of the downleg, we were well positioned to utilize the climate of the market to maximize the equity on their exchange upleg.
Our clients were performing at a 3.02% CAP rate and after using a straight equity exchange, they were able to achieve double the cash flow, in a larger property, newer building, and national credit tenant.
Reach out to our Orange County Industrial Specialists Sean Baney and Wesley Wang to see how they can help you with your property.