Irvine-based Sares-Regis Group, one of the most active industrial developers in Southern California over the past year, has bought a 25-acre property in the city of Orange that real estate watchers believe could eventually see more industrial construction.
The privately held real estate investor and developer recently closed on the purchase of land and property at 2060 N. Batavia St. The site is in a largely industrial part of Orange, a little more than a mile northeast of Angel Stadium of Anaheim.
The property includes a nearly 228,000-square-foot industrial building that records show being close to 50 years old.
Real estate sources estimate the property sold for more than $30 million.
The building at 2060 N. Batavia is fully leased to Media, Pa.-based foam manufacturer FXI, which previously operated under the Foamex International Inc. name.
Property records show the property being sold by an entity listed as Pegasus Properties, whose ownership includes former executives of Foamex, which was taken private in 2009 following a stint in bankruptcy.
Several real estate sources familiar with the property expect Sares-Regis to redevelop the site once FXI departs, although timing for that move is unclear. It is believed that the foam manufacturer has a lease for the building that runs into early next year, which could be extended.
The 25-acre site appears large enough to support development of one high-end industrial building in the 500,000-square-foot range, or several smaller buildings that could total closer to 400,000 square feet.
A development of that size range would be among the largest industrial projects to break ground in Orange County in several years.
The only development larger than 500,000 square feet currently on the books is Sacramento-based Panattoni Development Co.’s Anaheim Concourse project, which should see nearly 1.6 million square feet of high-end buildings break ground this year.
No plans for new construction at the Batavia Avenue property have been announced to date by Sares-Regis, and there appears to be no redevelopment plans filed with the city of Orange.
Sares-Regis executives noted last week that Foamex still has a lease for the site.
New construction at the site would be in keeping with Sares-Regis’ aggressive push in industrial development—much of it just outside OC—of late.
The company has close to $400 million of industrial development now under way, according to Peter Rooney, Sares-Regis president for commercial investments.
The company is moving ahead with development of land at Douglas Park in Long Beach, near the city’s airport. The land there is expected to hold several million square feet of commercial space.