Menlo Park, CA (PRWEB) April 27, 2010
HG Capital, LLC (“HG”) is pleased to announce the acquisition of a 28,000 s.f., eight-acre industrial facility located in Vernon, California. HG purchased the property in April 2010 in its first joint venture with Morecambe Partners, a Los Angeles based industrial acquisition firm.
Concurrent with the acquisition, the existing tenant, a publicly traded logistics company, executed a 10-year triple-net lease. The property has excellent freeway access and is located in the highly desirable industrial area of Vernon, which boasts a zero vacancy for similar product.
The acquisition price represented a strong cap rate due to a highly motivated seller. A life insurance company provided a loan of 50% of the acquisition cost on a 10-year, fixed-rate basis. HG provided 90% of the remaining equity capital. The business plan is to hold the asset for cash flow in the medium term.
Established in 1995, HG Capital is located in Menlo Park, CA. The firm has invested in over 70 real estate projects and continues to actively seek both residential and commercial opportunities.