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Brea Office Fetches $20.8 Million After Upgrade

A Brea office largely occupied by Zodiac Inflight Innovations, a maker of portable in-flight entertainment players and related software, has traded hands for more than $20 million.

An affiliate of Los Angeles-based Palisades Capital Realty Advisors LLC, a commercial real estate investment management and advisory firm, recently closed on the purchase of 2929 Imperial Highway, a two-story office.

The 121,153-square-foot building sold for about $20.8 million, or nearly $172 per square foot, according to CoStar Group Inc. records.

That’s nearly double the building’s value from about two years ago.

A partnership of Newport Beach-based Koll Co. and Miami-based Rialto Capital bought the office out of receivership in late 2012 for about $10.8 million, or $89 per square foot, when it was about 50% leased.

In addition to upgrading the property, previously known as Saturn Business Park, Koll Co. and Rialto Capital boosted occupancy to nearly 100%, largely by getting Zodiac Inflight to commit to an 81,077-square-foot lease about a year ago.

Zodiac Inflight was previously known as IMS Co. and is a unit of Zodiac Aerospace in France. The tenant occupied about 30,000 square feet at the office until deciding to expand its offices there last year under a new seven-year lease.

Palisades Capital is headed by Joaquin de Monet, the former chief executive of Arden Realty Inc., one of Southern California’s larger office landlords.

Rexford Portfolio

A pair of industrial properties in Anaheim and Irvine totaling 243,700 square feet is part of an $88.5 million portfolio sale that closed at the end of June.

Los Angeles-based Rexford Industrial Realty Inc. bought a nine-building industrial portfolio from San Diego-based Westcore Properties. The 817,166-square-foot portfolio sold for about $108 per square foot.

The deal includes four buildings in San Diego, two in Los Angeles, and two in Orange County, which were about 87% leased on aggregate.

The local properties include 5235 E. Hunter Ave., a 119,700-square-foot manufacturing building in Anaheim that’s fully leased to a handful of tenants, and 1601 Alton Parkway, a 124,000-square-foot multitenant building in Irvine that holds the headquarters of circuit board manufacturer Irvine Electronics Inc.

The Irvine building is about 40% leased, the lowest occupancy of the buildings bought from Westcore.

Rexford officials said the building offers “an immediate value-add opportunity to reposition the property in order to deliver a high-demand product capable of achieving higher rents.”

Darla Longo, Barbara Emmons and Rebecca Perlmutter Finkel of CBRE Group Inc. represented Westcore and Rexford in the transaction.

Disney Closes on RV Park

Walt Disney Co. completed the purchase of an RV park near the Anaheim resort area for an employee parking lot.

Disney last month finalized the purchase of the 11-acre site near the intersection of West Ball Road and Harbor Boulevard, according to property records. A price for the sale, said to be in the works since late last year, was not disclosed.

The site had an estimated land value of $20 million to $24 million, depending on its uses, when the Newport Beach office of CBRE marketed it to prospective developers last year.

It had been the home of the Anaheim RV Village, which held nearly 300 trailer and camping spots catering to Disney tourists. The land, on the opposite side of the Santa Ana (I-5) Freeway from Disneyland, was once envisioned as a site for residential development by prior owners.

The site has had a few ownership changes over the past 10 years. An affiliate of Disney bought the land from NW Investment Co. in Newport Beach, according to property records.

Disney is expected to build about 1,400 parking spaces for employees there, according to city officials.

San Jose Sale

Bixby Land Co. in Irvine has sold a recently renovated and fully leased office park in Silicon Valley for $52.1 million.

New York-based American Realty Capital LLC bought River Oaks Parkway, a 165,000-square-foot campus in San Jose that’s leased to data storage firm Nimble Storage for its headquarters.

Bixby bought the nearly 30-year-old property in mid-2011 for a reported $19.5 million and spent about $14 million renovating it.

It brought on Nimble Storage as a tenant last year.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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