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Sares-Regis Pays $72M for Boeing Site in Surf City

One of Huntington Beach’s largest office buildings has sold, and is expected to make way for an industrial park.

An affiliate of Irvine-based developer Sares-Regis Group recently completed the purchase of the office at 14900 Bolsa Chica St., an eight-story, 285,000-square-foot property that’s about two miles west of the San Diego (405) Freeway.

It also bought an adjoining industrial facility, along with excess land at the site.

The entire property, which is on roughly 30 acres near the intersection of Bolsa Chica Street and Bolsa Avenue, sold for nearly $72.8 million, according to property records.

An Irvine-based company affiliated with Sares-Regis, Huntington Gateway Industrial LLC, bought the property, records show. The developer declined to comment on the purchase.

The property was sold by aerospace and defense giant Boeing Co., in a deal brokered by the local capital markets and industrial teams of Newmark Knight Frank.

The deal marks another retrenchment for the local operations of Boeing, which in 2016 announced it would move about 2,400 jobs out of its Huntington Beach facilities over four years, cutting local employment in half.

It’s reported eliminating a few hundred jobs there over the past nine months, according to state records.

Workers at Huntington Gateway would likely be moved to nearby Boeing facilities if a sale occurs.

Knock-Down

The sale of the Bolsa Chica Street property is the largest in West Orange County’s office market so far this year, and involved one of the three largest office properties in Huntington Beach by square footage according to data from real estate market tracker CoStar Group Inc.

A sale of the property had been expected for a few months; the Business Journal in April reported on Boeing listing the office—at the time a price in the $60 million or higher range was estimated for the site.

The new owners aren’t expected to operate it as an office landlord for long.

Real estate sources familiar with the property expect the existing buildings on the site to be torn down, to make way for a multibuilding industrial development that would top 400,000 square feet.

Such a project would be the largest industrial development in West OC in over a decade.

Specific details of the project haven’t been disclosed, and there’s no records of a new development proposal being filed with the city.

Sares-Regis has a similarly-sized project planned for land it owns about 30 miles up the 405 Freeway in Torrance.

The three-building, 450,000-square-foot project is the first phase of redevelopment at Toyota Motor Sales U.S.A. Inc.’s former North American headquarters in the Los Angeles County city.

The developer bought the 117-acre Toyota campus last year for a reported $270 million.

The privately-held firm, which does not disclose revenues, has a large industrial presence in Surf City, most notably its West County Commerce Center, a roughly 1-million-square-foot collection of buildings located a few blocks from the just-bought Boeing site that’s home to apparel firm Quiksilver and other tenants.

Sares-Regis recently added one more facility to its Huntington Beach portfolio, a nearly 60,000 square foot industrial building at 15301 Springdale St.

It recently paid a little more than $9 million for the property, which was sold by Aranda Tooling Inc., in a deal brokered by Brad Bierbaum and Jeff Carr, with the Orange office of CBRE Group Inc.

Family-owned Aranda, which is in the business of tooling, metal stamping, laser cutting, and metal fabrication, is moving its operations from Surf City to a facility in Chino that runs about 250,000 square feet.

The expansion is “directly related to providing parts to Tesla Motors for the production of the Model 3 electric vehicle,” according to state records pertaining to financing for the Chino property.

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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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