The firm recently raised its first fund, achieving $50 million in equity commitments resulting in approximately $130 million in buying power
ORANGE COUNTY, Calif. – MCA Realty, a full-service real estate investment and management company based in Orange County, California, has announced the recent acquisitions of five assets: two in Washington; two in Las Vegas, Nevada; and one in Orange, California, for a total consideration of just over $71 million.
The five properties were acquired through the firm’s first fund, ‘MCA Realty Industrial Growth Fund, LP’ [MCA], which met its target of $50 million in equity commitments within just three months earlier this year, resulting in approximately $130 million in acquisition capability, according to Tyler Mattox, principal at MCA Realty.
“Due to our long-established track record within the multi-tenant industrial space, we were able to identify, source, and deploy capital to acquire these assets relatively quickly after meeting the $50 million target for the first fund in July,” says Mattox. “Drawing upon our experience in the sector, we will implement upgrades and improve operational efficiencies to enhance the properties, creating long-term value and capitalizing on high demand.”
The five recent acquisitions include:
A 136,350 Square-Foot Multi-Tenant Industrial Asset in Puget Sound Metro
MCA has acquired Lakewood Business Center, a 136,350 square-foot multi-tenant industrial asset located in Lakewood, Washington, a submarket of the Puget Sound metro area, for $18.2 million.
According to Mattox, this property was the firm’s first acquisition in the state of Washington and was also the first within its fund.
“We have been active in multiple markets throughout the Western region over the last several years, including California, Arizona, and Nevada,” says Mattox. “With this acquisition, we are now expanding our portfolio into Washington state and plan to increase our presence in the Pacific Northwest based on continuing market growth.”
Lakewood Business Center consists of six buildings comprising a total of 36 units. Prior to purchase, the property was approximately 80% leased. During the escrow period, the firm increased occupancy at the property and the property is currently 100% leased, notes Mattox.
“Since acquiring the property, we have completed capital improvements including resurfaced parking fields, a new paint scheme, an overhaul of the HVAC systems, and the fencing and grading of an acre of undeveloped land, which we have leased as an outdoor storage area,” continues Mattox.
The property is located at 10107 South Tacoma Way in Lakewood, Washington.
MCA would like to thank Rebecca Perlmutter, Eric Cox, and Monte Decker with CBRE for their guidance on the transaction.
A 66,000 Square-Foot Multi-Tenant Industrial Property in Seattle Metro
MCA recently acquired Spectrum Business Park, a 66,000 square-foot, six-building industrial park in the greater Seattle metro area submarket of Federal Way, Washington, for $8.25 million.
“The property is currently 90% occupied by automotive tenants,” says Mattox. “There are not many options in the area for these tenants to relocate, so we anticipate long-term occupancy and believe there will continue to be upward pressure on rents.”
The firm plans to continue to lease remaining vacant space and implement a series of strategic improvements to enhance the property’s overall value.
“Spectrum Business Park is currently leased at rates 35% below market,” says Mattox. “We plan to implement capital upgrades to improve the property and ultimately bring rents to market. These renovations will include new paint, new signage, new landscaping, upgraded interiors, and the addition of security cameras and exterior lighting.”
The property is located 20 miles north of the firm’s Lakewood Business Center asset at 1800 S 341st Place in Federal Way, Washington.
Kyle Schipper and Kyle Sterling with NAI represented both parties to the transaction.
Industrial Park Totaling 143,000 Square Feet in Las Vegas, Nevada
MCA acquired a 143,000 square-foot industrial park in Northwestern Las Vegas, for $16.205 million in an off-market transaction.
“We were able to draw upon close broker relationships to secure the asset off market,” says Mattox. “We were attracted to this property based on strong in-place cashflow and potential for rental growth due to its superior location,” says Mattox.
The property is 100% leased to three long-term tenants, Mattox adds.
During ownership, MCA will implement a series of capital upgrades to the property, including HVAC improvements, new exterior paint, and landscaping.
The asset is located at 7350 Prairie Falcon Road in Las Vegas, Nevada. Adam Malan and Deana Marcello at Logic Commercial Real Estate represented both parties to the transaction.
A 126,000 Square-Foot Industrial Park in North Las Vegas
MCA has also acquired a 126,000 square-foot, six-building industrial park in North Las Vegas, Nevada for $19.15 million, according to Tyler Mattox.
“The property is currently 75% occupied with recently vacated units having a high concentration of office buildout,” explains Mattox. “We plan to subdivide the heavily improved units and renovate them to be equipped for more traditional industrial uses, in order to meet high market demand.”
MCA also strategically negotiated a lease buyout with a tenant that did not plan to renew, facilitating an accelerated repositioning of the property.
“This asset is located in a low-vacancy submarket and is across from
a new, state-of-the-art industrial project that was recently sold to a large institutional investor,” says Mattox.
The property is located at 3825-3985 West Cheyenne Ave, North Las Vegas, Nevada. MCA would like to thank Mike Kendall, Dan Doherty, Gian Bruno and Jerry Doty at Colliers for their guidance on the transaction.
A 42,000 Square-Foot Multi-Tenant Industrial Building in Orange, CA
MCA has acquired a 42,000 square-foot, two-building industrial property in the City of Orange in Orange County, California for $9.45 million in an off-market transaction.
“The property is situated in the heart of Orange County, near the Honda Center, where the area is seeing sub-2% vacancy rates and strong rent growth,” says Mattox, who explains that the firm’s ability to quickly identify and source this deal in the current market landscape speaks to the strength of its relationships, as well as its strong track record and reputation in the industry.
“We are well capitalized due to our fund commitments and have an understanding of the local market,” continues Mattox. “This, combined with long standing partnerships, allowed us to source and close this transaction in a shortened time frame.”
MCA plans to implement a series of capital upgrades including new interiors, an updated paint scheme, renovated parking, landscaping, and roof detailing. Many tenants at the property are on month-to-month leases, allowing for flexibility, Mattox adds.
The asset is located at 1523 and 1547 Struck Avenue in Orange, California. This was a principal-to-principal transaction with no brokers involved.
MCA continues to deploy equity through its MCA Realty Industrial Growth Fund, LP targeting value-add industrial throughout the western U.S.
About MCA Realty
MCA Realty is a full-service real estate investment and management company specializing in commercial properties throughout the Western U.S. The goal of the company is to identify real estate investment opportunities and execute value creation strategies that maximize returns to its investors.
MCA Realty’s principals, Tyler Mattox, Jared Gordon, and Peter Cheng have successfully navigated a full spectrum of market conditions, and pride themselves on building and maintaining strong relationships with industry partners.