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 the closing of 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, according to Chief Financial Officer Irving Kau.
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. The surveyed aggregate land area is 464,955 square feet (10.73 acres), divided into four separate parcels. Currently, the property is 99.2% occupied by approximately 16 tenants, with most lease terms ranging from 5 to 8 years. Focus Universal does not intend to alter the terms of existing lease agreements and plans to occupy only about 2,000 square feet for its corporate headquarters. The company funded the purchase with a standard term loan agreement with East West Bank, as detailed in the 8-K filing.
Kau emphasized the financial benefits of the acquisition, noting that the building holds a very high capitalization rate for Los Angeles County of over 10%. “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,” he said. He also highlighted that the Los Angeles County Assessor assessed aggregate value of the building is $28.3 million in 2026, over $10 million above the purchase price. The building generated monthly rental income of over $257,000 in 2025, amounting to roughly $3.1 million in annual rents. With monthly principal and interest payments under $68,700, Kau expects the additional cash flow to benefit the company significantly. The acquisition also reduces corporate rent and expense burdens while bolstering overall equity and asset value.
Kau also pointed out that one of the parcels is zoned residential and remains undeveloped, with a Los Angeles County Assessor assessed value over $600,000. This parcel presents option value, as the company can develop it through partners or divest it, potentially adding further value. “We sincerely thank our shareholders for their unwavering support and belief in the equity value and future upside of our growth and company will allow us to realize our strategic growth plans and accelerate value creation for our shareholders,” Kau concluded.
The company has retained Lee and Associates to manage the property, while previous management Jamison Services will remain for 30 days to facilitate the transition. Focus Universal Inc. is a provider of patented hardware and software design technologies for IoT and 5G, with 26 patents and patents pending in various phases and eight trademarks pending. The company trades on the Nasdaq Markets under the ticker FCUV.
