Valencia logged one of the largest deals of the past month, and in recent memory for that matter. Valencia-based RAH Industries, a sheet metal, tube bending and machining business founded in 1971, closed escrow on the purchase of a 150,000 square foot industrial property at 24800 Avenue Rockefeller in the Valencia Industrial Center. Details of the transaction were not disclosed. Jim Ebanks, Lauren Ebanks and Andrew Starnes of Realty Advisory Group, Inc. represented the buyer. And Brad Koehler, Rick Kaplan and Robert Lambert of Cushman & Wakefield represented the seller, the Daily News of Los Angeles. The building sits on 10.65 acres of land, consisting of two parcels, said Jim Ebanks. And the lay-out gives RAH plenty of room to expand. The purchase is the largest industrial building sale in Valencia and the San Fernando Valley so far in 2009, according to AIR Commercial Real Estate Association. RAH has worked with clients such as Boeing, Lockheed Martin, Northrop Grumman and Raytheon, and has been operating in three buildings scattered throughout Valencia. The company currently occupies 76,000 square feet of space and plans to consolidate all of its operations in the new building. It seems like a good sign that a brick and mortar company is making a capital investment of this scale. It doubles the company’s square footage in the Santa Clarita Valley, and hopefully means RAH will eventually spread its wings. Some say the property is iconic. Built in the late 1980s, it was designed and developed at the direction of the late Jack Kent Cooke, former owner of the Los Angeles Lakers, Washington Redskins and a number of media organizations. The Daily News used it for many years. In fact, the printing press is still on the property, said Ebanks. The building is institutional grade, constructed to the highest specifications, he said. It’s situated on a corner lot and falls into one of the state’s enterprise zones. It was on the market for approximately 60 days, and there were multiple offers. I contacted Daily News publisher, Jack Klunder. He didn’t have much to say about the transaction other than corporate made the decision to sell. And, the company is outsourcing its printing operations these days. Ideally, the sale means there are still a few buyers in the marketplace looking for high grade industrial properties in the 100,000+ square foot range. The sale is another boon for the Santa Clarita Valley, which has boasted some of the Valley’s only positive industrial net absorption in the past six months. Some say the area is well situated for when the commercial real estate market takes a turn for the better. In July, Advanced Bionics inked a lease agreement for a five-story 144,000 square foot building in the city of Santa Clarita. The company is also consolidating. The city kicked-in $10,000 worth of permit fees and waived the cost of expedited permit fees to facilitate the deal. It was a huge transaction in an otherwise depressing time for local brokers. And last month the deal may have gotten sweeter. Advanced Bionics entered into a definitive merger agreement with Sonova Holding AG, the world’s leading provider of hearing systems. Sonova experienced organic sales growth in local currencies of 17.5 percent for its mid-year. Growth from acquisitions was 4.3 percent. The EBITA margin increased to 27.3 percent. Earnings per share were up 22 percent, and free cash flow rose significantly. Having a financially strong, global, and expanding company backing Advanced Bionics has gotta be a pretty good feeling for the building’s owner. And hopefully Sonova’s stake in Advanced Bionics will also eventually spur high-quality employment in the region. Staff Reporter Eric Billingsley can be reached at (818) 316-3124 or at [email protected].
RAH Industries Buys Daily News Building in Valencia
