CIP Real Estate has acquired the Walnut Tech Business Center, a multi-use business park in the supply-constrained San Gabriel Valley submarket, for $60.65 million. The property is located at the intersection of Valley Boulevard and Lemon Avenue in Walnut and is described as a shallow bay industrial complex catering to small-bay users. The business park totals 200,049 square feet across 11 separate buildings, providing a clustered industrial and business environment within Los Angeles County.
The Walnut Tech Business Center is currently reported to be 92% leased, indicating a high level of tenant occupancy at the time of sale. The tenancy details, including specific tenant names, lease terms, and remaining lease durations, were not disclosed. The property is characterized in the source material as a best-in-class small bay industrial park, underscoring its positioning within a highly competitive and space-constrained regional industrial market.
Following the acquisition, CIP Real Estate plans to undertake a capital improvements program estimated at $3.5 million. The planned work will include upgrades to both exterior and interior finishes across the 11-building project. While specific scopes of work and timelines were not detailed, the capital plan is framed as an enhancement effort aimed at improving the overall quality and presentation of the business park for existing and future tenants.
Commenting on the transaction, CIP Real Estate CEO Eric Smyth noted that very few quality small bay industrial parks come to market in Southern California each year, particularly in strategically important submarkets of Los Angeles County such as the San Gabriel Valley. His remarks highlight the limited availability of institutional-quality product in this segment and the competitive nature of acquiring such assets when they become available.
The acquisition was financed with a loan provided by City National Bank. The debt was arranged by the Southern California debt team at JLL, which structured the financing for CIP Real Estate. Specific loan terms, including proceeds, interest rate, and maturity, were not disclosed in the source text. On the equity side of the transaction, CIP Real Estate represented itself as the buyer, with no additional equity partners mentioned.
The seller in the transaction was an affiliate of AEW. The seller was represented by the JLL West Coast Capital Markets team, which included Patrick Nally, Evan Moran, and Chad Solomon. This team handled the investment sales assignment for the disposition of the Walnut Tech Business Center. The transaction underscores ongoing investor interest in small-bay industrial product in dense, supply-constrained Southern California submarkets, even as detailed underwriting metrics and return assumptions were not provided.
