Focus Universal Inc. Acquires $17.7 Million Class A Office Building in Monterey Park for Corporate Headquarters

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, which was further reduced 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, offering a blend of surface parking and an adjacent four-level parking structure topped with a canopy of solar panels that are currently leased. The surveyed aggregate land area of the purchase amounts to 464,955 square feet (10.73 acres), divided into four separate parcels. Currently, the property is 99.2% occupied by approximately 16 tenants, most of which have lease terms of 5 to 8 years. Focus Universal Inc. plans to occupy approximately 2,000 square feet of space and does not intend to alter the terms of existing lease agreements.

The company funded the purchase with a standard term loan agreement with East West Bank, as detailed in its 8-K filing. Focus has retained Lee and Associates to manage the property, while the previous management, Jamison Services, will remain for 30 days to facilitate the transition.

“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 will serve as corporate headquarters, holding 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,” remarked Irving Kau.

From a financial perspective, Kau highlighted significant value: “The building has a Los Angeles County Assessor assessed aggregate value of $28.3 million in 2026, over $10 million above our purchase price. The building also generated monthly rental income of over $257,000 in 2025, amounting to roughly $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. In addition to the calculated monthly cash flow, we also believe this particular asset purchase also significantly reduces corporate rent and some corporate expense burden and bolsters our overall equity and asset value for our company.”

Kau also noted that one of the parcels is zoned residential and remains undeveloped, holding a Los Angeles County Assessor 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.”

This acquisition marks a strategic move for Focus Universal, potentially enhancing its balance sheet and providing a stable income stream from rental operations, while also serving as its corporate headquarters. The transaction underscores the company’s commitment to long-term value creation for shareholders.