Focus Universal Acquires Monterey Park Office Building for $17.7 Million, Plans Corporate HQ

Focus Universal Inc. (NASDAQ:FCUV) announced today the completion of its 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 land parcels totaling 464,955 square feet, or 10.73 acres. The property, which is 99.2% occupied by approximately 16 tenants, will serve as the company’s corporate headquarters.

The company funded the purchase with a standard term loan agreement with East West Bank, as detailed in the 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.

Chief Financial Officer Irving Kau highlighted the financial benefits of the acquisition. ‘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,’ Kau said. He noted that the building holds a capitalization rate of over 10% for Los Angeles County, which he described as ‘exceedingly rare’ for high-value Class A commercial buildings with near-full occupancy.

Kau also pointed out that the Los Angeles County Assessor valued the property at $28.3 million in 2026, more than $10 million above the purchase price. The building generated monthly rental income of over $257,000 in 2025, amounting to approximately $3.1 million in annual rents. ‘If we consider the $257,000 monthly rental income, without considering any already contracted rent increases, coupled with our monthly principal and interest payments of under $68,700, we believe this additional cash flow will benefit the company,’ he said.

The company plans to occupy only about 2,000 square feet of the space, leaving the majority of the property leased to existing tenants. Most current leases have terms of 5 to 8 years, and the company does not intend to alter those agreements.

Additionally, one of the parcels included in the purchase is zoned residential and remains undeveloped, with an assessed value of 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,’ Kau said.

The acquisition is expected to reduce the company’s corporate rent and expense burden while bolstering its equity and asset value. Focus Universal, a provider of patented hardware and software design technologies for the Internet of Things (IoT), 5G, and AI-driven SEC financial reporting automation software, views this purchase as a strategic move to support its growth plans and accelerate value creation for shareholders.

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