Oct. 17 at 6:29 PM
$SKYH I believe one of the imminent 5 lease announcements will be a 17.09 acre lease at LGB Airport. This should cater to the Los Angeles and Orange County markets and see very strong demand. Given that their 18 acre lease at IAD is able to fit 343k of rentable square feet, I would expect this campus to be the same. I would also not be surprised to see revenues here exceed
$50/sqft.
I expect the lease to cost
$50K/acre annually meaning
$SKYH would be paying
$2.49/rentable sqft for the lease. If revenues are
$50/sqft and operating expenses for the ground crew are
$7.5, this has the potential for
$40/sqft NOI. At a 5% cap rate, that values this campus, once fully stabilized, at ~
$274 million.
Source:
https://cdn.kingcounty.gov/-/media/king-county/depts/executive-services/airport/documents/wrapm-presentations/lgb-west-side-parcel-development.pdf?rev=45090909a03c4cf08397a9c59f125b63&hash=9376B573025FDB2E044FBB8E7F6157BF
https://longbeachbuys.buyspeed.com/bso/external/bidDetail.sdo?docId=AP-23-325&amp%3Bexternal=true&amp%3BparentUrl=close
