JLL Arranges $60.65M Sale and $42.91M Financing of Walnut Tech Business Center for AEW and CIP Real Estate II LLC
JLL Capital Markets has arranged the $60.65 million sale and $42.91 million acquisition financing of Walnut Tech Business Center, an 11-building shallow-bay business park totaling 200,049 square feet in Walnut, California. AEW was the seller, and CIP Real Estate II LLC was the buyer. JLL represented AEW in the investment sale and arranged bank financing on behalf of CIP Real Estate II LLC.
Deal Details: Sale Price, Financing and Property Overview
The transaction closed Sept. 24, 2026, at a price of approximately $303 per square foot. The $42.91 million bank loan represents roughly 70.7% of the purchase price. The park comprises 109 individual suites ranging from approximately 640 to 8,400 square feet across industrial, flex-office and retail designations. The property was 94% leased at the time of sale.
Walnut Tech Business Center sits at the intersection of Valley Boulevard and Lemon Avenue in Walnut, within Los Angeles County's San Gabriel Valley submarket.
CIP Real Estate II LLC plans to invest approximately $3.5 million in interior and exterior upgrades at the property — roughly $17.50 per square foot — targeting common areas, façades, signage and tenant-ready space as part of a repositioning strategy.
JLL Brokerage Teams: Patrick Nally, Chad Solomon, Peter Thompson and Others
JLL's Capital Markets team representing seller AEW included Senior Managing Director Patrick Nally, Executive Vice President Evan Moran, Senior Director Chad Solomon, Associate Shae Vomund and Analyst Lauren O'Neill.
JLL's Debt Advisory team, which arranged acquisition financing for CIP Real Estate II LLC, was led by President Kevin Mackenzie and Senior Director Peter Thompson, alongside Associate Kyle White and Analyst Colter Smith.
San Gabriel Valley Industrial Market Context
The transaction pricing aligns closely with broader San Gabriel Valley industrial market benchmarks. Second-quarter 2026 sales in the Los Angeles–San Gabriel Valley industrial market averaged $303 per square foot, with an average cap rate of 5.0% across the market. Regional net absorption rebounded to 1.21 million square feet in the second quarter after recording negative 1.07 million square feet in the first quarter. Vacancy in the San Gabriel Valley stood at 5.4% in the second quarter, down from 6.0% the prior quarter but above the 5.0% level recorded a year earlier. Average asking rents reached $16.44 per square foot annually on a triple-net basis, up from $15.00 per square foot in the fourth quarter of 2025.
Within the Walnut submarket specifically, industrial inventory totals approximately 7.17 million square feet. Direct vacancy in Walnut was 4.3% in the second quarter, below the broader San Gabriel Valley figure, though the submarket recorded negative net absorption of 36,661 square feet in the second quarter and negative year-to-date absorption of 45,716 square feet. Average direct asking rent in Walnut was $1.27 per square foot per month.
About the Buyer, Seller and Broker
CIP Real Estate is a full-service real estate investment company focused on the acquisition, repositioning, rebranding and management of industrial assets across West Coast, Southeast and Texas markets. Founded in 1995 and based in Irvine, California, the company owns and manages more than 10 million square feet of properties, with offices in Ontario, Riverside and Hayward in California, as well as Las Vegas, Charlotte, Atlanta, Dallas and Florida.
AEW Capital Management has provided real estate investment management services to investors worldwide for 45 years. AEW and its affiliates manage $85.5 billion in private real estate equity, debt and listed securities across North America, Europe and Asia as of March 31, 2026, and maintain offices in Boston, Los Angeles, Denver, London, Paris, Hong Kong, Seoul, Singapore, Sydney and Tokyo, among other locations.
JLL is a global commercial real estate services and investment management company with annual revenue of $26.1 billion and operations in more than 80 countries. JLL's Capital Markets group includes more than 3,000 specialists with offices in nearly 50 countries, offering investment sales and advisory, debt advisory, mergers and acquisitions, loan sales, equity and fund placement, net lease, derivative advisory and energy and infrastructure advisory services.
Sources
JLL Newsroom: JLL arranges sale and financing of Walnut Tech Business Center