How We Delivered a 63.4% Gross Return in 2.5 Years
When we represented our client who had a clear objective: identify a high-potential industrial asset, lease it quickly, and position it for a strategic exit. Less than three years later, that strategy resulted in a total gross return of over 63.4%.
Here's are thee (3) simple steps we took to get it done.
☝️Step 1: Purchase a Desirable Property Below Market Value
We found an off-market opportunity and closed escrow on October 5, 2022, at a purchase price of $2,225,000 ($311.59 per SF). This negotiated price was below market value. The asset: a 7,221 square foot industrial condo in Orange, CA, near Angel Stadium.
✌️Step 2: Secure a Quality Tenant, Quickly
While we were in escrow, we identified several prospective tenants and received multiple lease offers. The result? A 3-year lease agreement with a creative manufacturing and design company, all before closing escrow.
Lease Start: November 1, 2022
Rent Schedule: Starting base rental rate $1.85/SF with 4% annual increases
🤟Step 3: Sale the Property at Maximum Value
Our comprehensive market analysis revealed a key insight: the property would command a higher value if delivered vacant and marketed to owner-users rather than sold as a leased investment. With that knowledge and our deep familiarity with the local industrial market, we successfully negotiated a lease termination clause with the existing tenant well in advance of the sale process.
Once the path was cleared, we strategically positioned the asset for sale. We received multiple competitive offers and closed escrow on May 19, 2025, at a sale price of 💰$3,213,345 ($445 per SF), which is an above average sales price.
🎯The Takeaway
This deal exemplifies the kind of full-cycle value our team delivers; from sourcing to leasing to disposition. By outperforming market rents, securing strong tenancy, and creating buyer demand, we turned a well-located industrial condo into a high-performing investment.
Investment Overview:
Purchase Price (2022): $2,225,000 ($311.59 per SF)
Sale Price (2024): $3,213,345 ($445 per SF)
Gross Appreciation: $988,345 (44.4%)
Rental Collection:
Total Rent Collected: $422,868 (19.0%)
Operating Expenses Paid During Hold: $110,962
Net Income: $311,906 (14.0%)
Result:
Total Gross Amount: $1,411,213
Total Gross Rate of Return: 63.4%
Totally Happy Client: 🥳
This deal exemplifies the kind of full-cycle value our team delivers—from sourcing to leasing to disposition. By outperforming market rents, securing strong tenancy, and creating buyer demand, we turned a well-located industrial condo into a high-performing investment.
If you're looking to buy, lease, or sell industrial assets in Orange County, let's talk
Gary Martinez, CCIM, SIOR
Ashwill Associates
(714) 905-9383
gary@ashwillassociates.com
www.Gary-Martinez.com
DRE Lic #01318932