Focus Universal Inc. (NASDAQ:FCUV), a provider of patented hardware and software design technologies for IoT, 5G, and AI-driven SEC financial reporting automation software, announced today the completed acquisition of a five-level Class A office and commercial building at 901 Corporate Center Drive in Monterey Park, California. The purchase price was $17.7 million, with a net discount of over $419,000 due to rent prorations, security deposits, and other reconciliation amounts.
The property sits on 10.73 acres across four parcels and includes a four-level parking structure topped with solar panels currently under lease. The building offers approximately 100,743 square feet of rentable Class A office space and is 99.2% occupied by about 16 tenants, with most leases having terms of 5 to 8 years. Focus Universal plans to occupy roughly 2,000 square feet for its corporate headquarters and does not intend to alter existing lease agreements. The company funded the purchase with a term loan from East West Bank, as detailed in its 8-K filing.
Chief Financial Officer Irving Kau highlighted the financial merits of the acquisition, noting a capitalization rate exceeding 10%, which he described as "exceedingly rare" for high-value Class A commercial buildings in Los Angeles County. The Los Angeles County Assessor valued the property at $28.3 million in 2026, more than $10 million above the purchase price. In 2025, the building generated monthly rental income of over $257,000, equating to roughly $3.1 million annually. Kau stated that after accounting for monthly principal and interest payments of under $68,700, the additional cash flow will benefit the company, along with reduced corporate rent and expense burdens.
One of the four parcels is zoned residential and remains undeveloped, with an assessed value over $600,000. Kau noted that this parcel presents "option value" as the company could develop it through partners or divest it, potentially adding to overall shareholder value. "We sincerely thank our shareholders for their unwavering support and belief in the equity value and future upside of our growth," Kau said, adding that the acquisition will help realize strategic growth plans and accelerate value creation.
The company has retained Lee and Associates to manage the property, while previous management Jamison Services will remain for 30 days to facilitate transition. Focus Universal, which trades on the Nasdaq Markets, develops patented technologies for IoT and 5G, holding 26 patents and eight trademarks pending.
