Focus Universal Inc. (NASDAQ:FCUV) announced today that it has completed the acquisition of a five-level Class A office and commercial building located at 901 Corporate Center Drive, Monterey Park, CA 91754. The purchase includes a four-level parking structure and multiple land parcels totaling 464,955 square feet (10.73 acres). The property provides approximately 100,743 square feet of rentable office space and is currently 99.2% occupied by about 16 tenants, with most leases having terms of 5 to 8 years. The company plans to occupy approximately 2,000 square feet for its corporate headquarters and does not intend to alter existing lease agreements.
Chief Financial Officer Irving Kau highlighted the financial merits of the deal, stating, "We are very happy with our building purchase of $17.7 million, which was discounted further from the $17.7 million purchase price by over $419,000 due to rent prorations, security deposits, and other such reconciliation amounts." The building carries a capitalization rate exceeding 10%, which Kau described as "exceedingly rare" for high-value Class A commercial buildings in Los Angeles County with near-full occupancy.
The property has a Los Angeles County Assessor assessed aggregate value of $28.3 million in 2026, over $10 million above the purchase price. Kau noted that the building generated monthly rental income of over $257,000 in 2025, amounting to roughly $3.1 million in annual rents. He emphasized that with monthly principal and interest payments under $68,700, the additional cash flow will benefit the company, along with reducing corporate rent and expense burdens. "We believe this additional cash flow will benefit the company," Kau said, adding that the asset purchase "bolsters our overall equity and asset value."
The acquisition was funded through a standard term loan agreement with East West Bank, as detailed in the company's 8-K filing. Focus Universal has retained Lee and Associates to manage the property, while previous management Jamison Services will remain for 30 days to facilitate the transition.
Kau also noted that one of the parcels is zoned residential and remains undeveloped, with an assessed value over $600,000. "This high value land with a city view also presents option value to our company as we can still develop the parcel through partners or divest the parcel, which would add also to the overall value for the company," he concluded.
Focus Universal Inc. is a provider of patented hardware and software design technologies for the Internet of Things (IoT) and 5G, with 26 patents and patents pending. The company trades on the Nasdaq Markets. For more information, refer to the original release on NewMediaWire.
