The developer of the Anaheim Concourse industrial campus has closed on the purchase of another, smaller development site near the Platinum Triangle.
An affiliate of Newport Beach-based Panattoni Development Co. recently completed the buy of a nearly 7-acre site just off the Santa Ana (5) Freeway in Anaheim where it plans an industrial development of up to 150,000 square feet.
The formerly city-owned 1710 S. Anaheim Way sold for $10.2 million, or a little more than $1.4 million an acre, according to city records.
The city put the land up for sale more than a year ago. It’s on a one-way street that connects Katella Avenue and the Platinum Triangle to Anaheim Boulevard and the Anaheim Resort area.
Anaheim marketed the site primarily to industrial developers with the expectation that it could accommodate a high-end industrial or R&D project.
“A review of the highest and best use of the subject site has determined that the site would be best served with manufacturing, industrial, research and development or technology-type uses,” said the city’s 2015 request for proposal.
The largely vacant property once was considered for a city park and recreation area, but California regulatory agencies nixed the idea several years ago due to its proximity to the freeway.
A minimum bid of $9.7 million was projected, according to city filings.
Other area developers that include Newport Beach-based CT Realty and Alere Property Group and Irvine-based CapRock Partners LLC bid on the land at prices equal to or above that minimum, according to the city filings.
Tile mogul Larry Bedrosian, who owns a number of industrial properties in Orange County for his own operations and for real estate investments, bid $10.5 million bid for the site, according to city records.
The city last spring chose Panattoni Development to buy it, and property records show the deal closed a little more than a month ago.
It’s Panattoni’s first reported deal in the city since it sold a large portion of its 80-acre Anaheim Concourse campus, which it built on land near the Riverside (91) Freeway that once served as a Boeing Co. campus.
Panattoni and its investment partner in Anaheim Concourse, New York-based Clarion Partners, this past October completed the sale of a seven-building, 965,255-square-foot collection of buildings that represent the for-lease portion of Anaheim Concourse, which is the largest industrial development built in Orange County in over a decade.
The largely full buildings were acquired by real estate investment adviser Bentall Kennedy, a Toronto-based real estate money manager with U.S. operations based in Seattle.
It paid about $188 million, or $195 per square foot, making it the largest sale of OC industrial buildings in one location in at least 10 years by total price, according to data from market tracker CoStar Group Inc.
Panattoni continues to have one of the busiest pipelines outside of OC of any privately held industrial developer in the country.
Projects include a 482,300-square-foot speculative industrial development in the Henderson Airport region of Nevada, a 284,580-square-foot warehouse in Suffolk, Va., and a distribution center near Atlanta that could be nearly 1.5 million square feet, according to the company’s website.
