Focus Universal Inc. (NASDAQ:FCUV), a provider of patented hardware and software design technologies for the Internet of Things (IoT), 5G, and AI-driven SEC financial reporting automation software, announced today that it has closed the acquisition of a five-level, Class A office and commercial building along with a four-level parking structure and land parcels, located at 901 Corporate Center Drive, Monterey Park, CA 91754. The purchase price was $17.7 million, discounted further by over $419,000 due to rent prorations, security deposits, and other reconciliation amounts.
The property comprises approximately 100,743 square feet of rentable Class A office space over five levels, with a parking ratio of 4.1 per 1,000 square feet, offering a blend of surface parking and an adjacent four-level parking structure with a canopy of solar panels currently leased. The surveyed aggregate land area amounts to 464,955 square feet or 10.73 acres, divided into four separate parcels (Parcel Numbers 5237-022-014, 046, 047, and 5237-002-021). Currently, the property is 99.2% occupied by approximately 16 tenants, with most lease terms ranging from 5 to 8 years. Focus Universal plans to occupy approximately 2,000 square feet of space and does not intend to alter existing lease agreements. The company funded the purchase with a standard term loan agreement with East West Bank, as detailed in the 8-K filing. Lee and Associates has been retained to manage the property, while previous management, Jamison Services, will remain for 30 days to facilitate the transition.
Chief Financial Officer Irving Kau highlighted the financial merits of the acquisition, noting that the building holds a very high capitalization rate for Los Angeles County of over 10%. He stated, “We believe high-value Class A commercial buildings in Los Angeles area with cap rates above 10% with 100% occupancy, upon Focus moving into the building, are exceedingly rare.” Kau also pointed out that the Los Angeles County Assessor assessed the aggregate value of the building at $28.3 million in 2026, over $10 million above the purchase price, though the two valuation numbers are unrelated. The building generated monthly rental income of over $257,000 in 2025, amounting to roughly $3.1 million in annual rents.
From a cash flow perspective, Kau emphasized that with monthly principal and interest payments under $68,700, the rental income provides significant additional cash flow for the company. He added, “In addition to the calculated monthly cash flow, we also believe this particular asset purchase significantly reduces corporate rent and some corporate expense burden and bolsters our overall equity and asset value for our company.”
Furthermore, one of the parcels is zoned residential and remains undeveloped, with a Los Angeles County Assessor assessed value over $600,000. Kau noted that this high-value land with a city view presents option value, as the company can develop the parcel through partners or divest it, adding to overall value for shareholders. The acquisition aligns with Focus Universal’s strategic growth plans and is expected to accelerate value creation for shareholders.
Focus Universal Inc. is known for its patented technology platforms with 26 patents and patents pending in various phases, along with eight trademarks pending. The company’s technologies aim to reduce costs, product development timelines, and energy usage while increasing range, speed, efficiency, and security. The acquisition of the Monterey Park property marks a significant step in the company’s expansion and financial strategy.
