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Pacific Industrial Plans Anaheim Redevelopment

Pacific Industrial has doubled up on its commercial property holdings in Anaheim’s Platinum Triangle.

The Long Beach-based investor and developer of industrial properties recently closed on the purchase of North Stadium Business Center, a 9-acre, multitenant business park just off Katella Avenue, to the north of Angel Stadium and a few blocks west of the Honda Center.

UBS Realty helped finance the $22.6 million acquisition, which sold for about $2.5 million an acre.

The deal also works out to a price of about $150 per square foot for the 1970’s-era buildings at the 151,000-square-foot business park.

North Stadium Business Center is at 2020-2120 E. Howell Ave. It’s next to an 8.6-acre property that’s also part of Pacific Industrial’s portfolio.

The second industrial parcel, which holds a collection of small-sized buildings, sold for $14.6 million, or about $1.7 million per acre, at the end of 2017.

“We have been interested in buying this property since we closed on the site located immediately adjacent,” Pacific Industrial co-founder Dan Floriani told the Business Journal.

The latest deal was an off-market transaction. It was sold by an affiliate of Seligman & Associates Inc. of Southfield, Mich.

Seligman & Associates has been shedding a few of its area properties of late. In December, the Business Journal first reported that the company sold Axis, a five-building creative-office campus just south of Angel Stadium that holds the headquarters of the Orange County Register and others.

That 301,000-square-foot property sold for $83.1 million, or just over $276 per square foot. It was bought by Irvine-based Pendulum Property Partners.

Next Brew Spot?

The two industrial properties now in Pacific Industrial’s Anaheim portfolio have roughly 45 tenants.

That figure might decrease as Pacific Industrial consolidates one portion of its holdings to prepare for a renovation slated to begin soon.

That section of land, which is referred to as Stadium Landing, could end up as more than just industrial space.

It “has the ability to attract a brewery or two,” Floriani said, noting the city’s fast-growing beer-making scene, which has seen several craft breweries open up in the vicinity of the baseball stadium the past few years.

“This is an older project that hasn’t had a renovation in many years, so we want to update the space and turn it into a premiere multitenant industrial site with about 40 diverse tenants” in the industrial and retail sector, Floriani said.

At the time of its initial 2017 purchase, Pacific Industrial indicated it was exploring alternative development options for the 8.5-acre site.

That’s still the case, although plans haven’t been finalized yet.

The site could still “attract a nonindustrial/alternate use in the near term,” Floriani said.

In each Anaheim acquisition involving Pacific Industrial, Voit Real Estate Services LLC represented the buyer and seller.

Seth Davenport, an executive vice president at the Anaheim office of Voit, said the “highly visible location with immediate access to 7 million rooftops and three major freeways” makes the asset valuable.

Facelift

Pacific Industrial has tapped Architects Orange to give the Anaheim center a refreshed look, which Floriani describes as “retro-industrial.”

“The intent is to update the look while maintaining its character, and pay homage to the fact that we are located in between two great stadiums which draw a very vibrant community,” Floriani said.

The latest purchase represents a variation from the firm’s portfolio, which includes 3.5 million square feet of property throughout Southern California.

“We have done about $900 million in transactions since we started the company in 2012, and the vast majority of that is ground-up development,” Floriani said. “In this current environment with dramatically increased land prices we have seen more opportunities in existing assets.”

There’s a dwindling supply of multitenant industrial buildings in Orange County, Floriani said. This purchase allows the company to “gain control of a large area, including the only acreage in the market that has not yet been developed.”

The firm serves as a manager for most of its other assets—including tenants in logistics, technology, and e-commerce—but may bring in a property manager to oversee the larger Anaheim space.

“We want it to be a vibrant business park that is attractive to a wide array of great companies. Anaheim is already a great place to live and work, and we think it’s the right time to provide a business park that caters to the environment that already exists here,” Floriani said.

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