Lab Five

• Predictable Escalating Revenue: Fully net-leased asset featuring contractual 3.0% annual rent compounding, providing built-in inflation defense and predictable cash flow growth through 2032 plus two 9-year options.
• Accelerated Depreciation & Tax Advantages: Substantial site-specific capital improvements—such as outdoor soccer fields, turf, fencing, exterior lighting, and drainage infrastructure—may qualify as 15-year land improvements under a cost segregation study, offering potential tax benefits and accelerated tax write-offs for buyers. Consult with your CPA to confirm. This not tax advice.
• Sticky Tenant Capital Base: The facility features an estimated $750,000 in specialized capital improvements funded directly by the tenant, locking in site-specific operational utility for their regional footprint, including: 3 new ADA compliant restrooms, New 400amp electrical system, New paint and plumbing system, New landscaping, Complete building refresh, Substantial tenant specific improvements
• High-Barrier Infill Land Asset: Situated on a substantial ±1.49 AC parcel in Gardena’s supply-constrained industrial pocket, offering underlying covered-land value with minimal structural depreciation.
• Flexible Future Upside: Low coverage ratio provides long-term exit optionality, including potential transition to Owner/User or future residential rezoning alignment with local municipality growth plans.
• Core South Bay Connectivity: Immediate proximity to the I-110 and I-105 arterial corridors provides rapid reach across the South Bay, LAX freight terminals, and the San Pedro Bay port complex.
• Above-Market South Bay Yield Profile: Offered at a 6.85% Cap Rate, providing an exceptionally rare, elevated yield premium compared to typical South Bay industrial and single-tenant NNN assets, which average in the sub-6.00% range across Greater Los Angeles.