The Offering
CBRE, Inc., as exclusive advisor, is pleased to present the opportunity to acquire 12600 Yukon Avenue (the “Property”), a fully leased, single-tenant industrial building in Hawthorne, California. The Property totals approximately ±20,321 square feet on a 0.98-acre parcel zoned M-2 (heavy industrial) and is 100% leased to The Rise Gym, a youth gymnastics, cheer and ninja fitness training facility, through March 2031.
The Property sits within Hawthorne’s “Space Corridor,” minutes from SpaceX headquarters, with immediate access to Interstate 105, Interstate 405, Interstate 110 and Los Angeles International Airport (LAX).
The South Bay is one of the strongest rent growth markets in the country, driven by its access to major freeways, a large population base, LAX and the San Pedro Bay port complex. Hawthorne’s supply-constrained industrial submarket has posted 12.1% average annual rent growth and 1.8% average vacancy since 2015. A wave of aerospace, space technology and advanced manufacturing investment across greater Los Angeles is now reinforcing demand for small-bay industrial buildings like 12600 Yukon Avenue.
Investment Highlights
— 100% Leased, Single-Tenant NNN Investment: The Rise Gym occupies the entire building on a lease through March 2031, with contractual rent increases and one five-year renewal option.
— Low-Management Ownership: Under the NNN lease, the tenant pays taxes, insurance and maintenance directly, and a single tenant means a single lease to administer, no common-area reconciliation across multiple suites and no day-to-day landlord responsibilities. That makes the Property well suited to a 1031 exchange buyer or a passive, out-of-area owner.
— Adaptive Reuse Potential: The building’s clear-span shell, built on an
80-foot-by-225-foot bow truss roof with skylights and a 16-foot clear height, has already converted once from warehouse/commercial use to a recreational training facility. M-2 heavy industrial zoning keeps that flexibility in place, supporting warehouse, distribution, light manufacturing or other commercial uses at the next rollover.
— The Hawthorne Advantage: Southern California municipalities are cracking down on industrial development with green zones, moratoriums and other unfavorable programs driving pricing on existing product higher. While adjacent Southern California municipalities implement stricter green zone regulations, development moratoriums, and burdensome development policies, the City of Hawthorne remains exceptionally business-friendly. Notably, properties in Hawthorne are exempt from Los Angeles’s Measure ULA transfer tax, preserving full transaction value and driving competitive demand and premium asset pricing for existing industrial real estate.
— A+ Industrial Market: Extremely Low 4.0% Industrial Vacancy in Hawthorne, with no new product currently under construction. Top South Bay Location within Hawthorne’s “Space Corridor,” one of the deepest tech and aerospace markets in greater Los Angeles. More than 10.4 million people live within 30 miles of the Property, which has access to Interstate 105, Interstate 405 and Interstate 110, and to LAX.