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Tuesday, Jun 28, 2022

Koll Co. Profits Off $55M of Industrial Transactions

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Irvine-based The Koll Company said it has made a sizeable profit off two recent industrial deals totaling $55 million.

The development and investment company took a break from its recent buying spree in the commercial sector to shed two industrial assets in Nevada and Arizona.  

The Koll Co. bought the two properties in separate 2019 deals; the recent sale marks 92% premium in total over the $28.7 million it paid for the assets two years ago.

In the larger of the two deals, Koll sold the 175,000-square-foot AmPac Industrial Park in Henderson, Nev. for $42 million. That’s about twice what it paid for the seven-building property in 2019.

In the latter deal, Koll traded Broadway Industrial Park, a 58,000-square-foot property in Tempe, Az., for $13 million. It bought the property for $7.5 million.

The high premiums are a result of significant upgrades and leasing efforts—both assets are currently fully occupied—as well as overall surging demand for the industrial sector across the U.S, the company said.

“We’re grateful that we were able to create exceptional value for our investment partners through the strategic purchase, hands-on management, reinvestment and sale of these properties,” said Scott Meserve, one of three principals at Koll, which was founded by the late Donald Koll in 1962.

CBRE represented Koll in the AmPac deal; Cushman & Wakefield brokered the sale of Broadway Industrial Park.

Buying Spree

In the past year, The Koll Co. has spent north of $100 million in the sector, adding 700,000 square feet to its West Coast portfolio.

This includes an expansion into two new markets: Salt Lake City and Beaverton, Ore.

“Our entry into the sector was a bit ahead of the strong value increases that industrial has seen in recent years, which has only been fueled by the pandemic,” Principal Scott Lanni previously told the Business Journal. Gerald Yahr is the third principal at the firm.

The company’s OC portfolio totals 4.5 million square feet, primarily consisting of low-rise office properties, which has historically comprised the bulk of Koll’s holdings.

Nearly two-thirds of that portfolio has been added in the past seven years, when Lanni, Yahr and Meserve joined forces to head the day-to-day operations of the company.  

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