Talon 2, LLC and Talon 3, LLC (“Talon”) are offering 2 industrial properties for sale in the City of Hawthorne, California. The offering is comprised of a 20,000 square feet industrial building and 5,720 square foot industrial building at 13100 Yukon Avenue, as well as, a 26,400 square foot industrial building at 13130 Yukon Avenue. The two properties combined total approximately 52,140 square feet of industrial space on approximately 2.27 acres of land. Both main buildings offer brick construction with laminate roofing and were constructed in 1961 and 1966. Significant improvements include 100% air conditioned, fenced and secure yard, as well as drop ceilings throughout in the main building at 13100 Yukon and the building at 13130 Yukon.
The buildings are fully leased by Thompson Industries, Ltd. under 10-year leases that expire on 12/31/2017. The current lease rate is $.70/SF/NNN with fixed annual increases for both properties. Annual triple-net rental revenue for 2008 is estimated at $437,808 with a 6.6% return, with annual triple-net rents reaching $546,762 in 2017 with a 8.3% return. The investment offers a steady, long-term income stream with no tenant roll-over, downtime, leasing or tenant improvement expenses for 10 years. Thompson Industries (the tenant) was founded in 1968 and has been a long-standing, high quality company in the South Bay community for forty years.
The properties are located within the City of Hawthorne, which is a prime location within the South Bay industrial market. The current vacancy rate for the El Segundo / Hawthorne market is 1.8% with rents seeing significant increases during the past 24-months. The properties offer access to three major freeways (405, 105 and 110) and offer close proximity to LAX, Hawthorne Municipal Airport and the Los Angeles and Long Beach ports.