Seventh Street Development Sells Two Industrial Buildings as Manufacturing Sector Heats Up

July 14, 2011 - PRLog -- LONG BEACH, CA –The sale of industrial buildings in Pomona and San Bernardino by developer Seventh Street Development to two local manufacturing companies is yet another indicator that the California economy may be on its way to a recovery, says Seventh Street Development Principal Craig Furniss.

At the 462,000 square-foot Mission-71 Business Park in Pomona, Eden Equipment Company, a manufacturer of highly specialized filtration vessels and filter cartridges, expanded into an 18,500 square-foot industrial building in a transaction valued at $2.2 million. The fully sprinklered building features 24-foot clear heights, dock high and ground level loading, fenced yards and power service expandable to 800 amps.  Larry Kliger of Lawrence Allen & Associates represented the buyer, Eden, and Seventh Street was represented by Lynn Knox & Barbara Emmons of CB Richard Ellis.  

In a separate transaction Technology Solutions & Services Incorporated (TSSI), a remanufacturer of LCD Monitors and computers for Hewlett Packard, purchased a 15,200 square-foot industrial building at the Waterman Business Center in San Bernardino for $1.1 million. The 191,000 square-foot master planned development features office, flex, and industrial space and is located at Waterman Avenue and Commercial Road immediately adjacent to the interchange of U.S Interstates 215 and 10.  TSSI was represented by Grace Machado of Ken Scott Real Estate.  

“While these are relatively small industrial transactions, the message they are sending is important,” says Furniss.   “Manufacturing and food companies, both large and small, are leading, and will lead, the economic recovery nationally and in Southern California as they gain confidence in an improving economy.  A lot of existing inventory that has been standing idle for a few years is now being absorbed and we are seeing increased activity within our portfolio.”  

Seventh Street has only one building of 38,000 square feet remaining at the Mission-71 Business Park and plans to start construction on the final phase of the project next year as they look for commitments to purchase or lease one or more of the three approved industrial buildings which are 40,000, 52,000 and 119,000 square feet in size.  At the Waterman Business Center, Seventh Street still has several office and industrial units remaining for sale or lease  from 2,000 to over 20,000 square feet.

The increase in industrial demand is not a surprise to real estate firm CB Richard Ellis.  CBRE’s Second Quarter, 2011 Industrial Leading Indicator Report states that the manufacturing sector continues to be a bright spot in the economy.  CBRE reports manufacturing has grown faster than the overall economy for the quarter and has been adding jobs at a faster rate than most other sectors.  

“The healthy increases over the past several quarters implies that growth in the sector should continue as new orders are a leading indicator of manufacturing output,” writes Edward J. Schreyer , CBRE Executive Managing Director, and James Costello of CBRE Econometric Advisors Torto Wheaton Research.

As further evidence that manufacturing is on the rise, next month Seventh Street will complete a 650,000 square foot-food manufacturing plant in Irwindale for Huy Fong Foods, a leader in the Asian foods market and best known for its popular Sriracha Hot Chili Sauce .  The facility will be the largest single building ever built in Irwindale, California.

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About Seventh Street Development (Developer)
Headquartered in Long Beach, California, Seventh Street Development http://7thsd.com is a privately held firm specializing in Southern California industrial, office and mixed-use commercial real estate projects. Since its inception in 2003, Seventh Street has developed numerous successful projects in various cities including Irwindale, Pomona, Riverside, San Bernardino, and Los Angeles. Seventh Street offers a unique mix of institutional financial strength and discipline coupled with implementation by hands-on, local entrepreneurs. .