Costa Mesa-based The Brookhollow Group has purchased two large industrial properties totaling roughly 650,000 square feet for $30 million in North Orange County in what company officials describe as a major expansion drive.
The investment and development company plans to look for additional properties, thanks to a new joint-venture relationship with money source Pacific Coast Capital Partners of El Segundo, which invests institutional funds.
“We’re eager to do more deals with Pacific Coast,” said Greg Knapp, president of The Brookhollow Group. ” We have a good structure set up with them and it just depends on what opportunities present themselves in the marketplace.”
The company’s most recent acquisitions include:
n A 437,279-square-foot industrial building at 4201 Bonita Place in Fullerton. The Brookhollow Group paid New York-based Argent Ventures $18.3 million for the multi-tenant industrial building, which is fully leased with tenants such as Frame-N-Lens Optical, Spiveco Inc. and Houdini Inc.
n A 218,520-square-foot manufacturing and distribution building at 205 S. Puente St. in Brea, for which the company paid a partnership of a Brookhollow-controlled entity $11 million.
Nick Colonna, a principal with Pacific Coast Capital Partners, said he feels the two companies’ cultures mesh and that his firm expects to fund future acquisitions by Brookhollow.
“We think very highly of them, and they’re always searching for other transactions similar to the one we just completed,” Colonna said. “Well be there to support them and provide capital.”
Pacific Coast Capital has not set specific goals for how many properties or how much it wishes to invest with Brookhollow, Colonna said. Instead, each deal will be studied and a decision made on an individual basis, he added.
Knapp said his firm will continue to look for industrial and office properties, either acquisition and/or development deals. And while he would like to focus on Orange County, Knapp said, Brookhollow will eye opportunities in other markets.
“Geographically we’ve pretty much been focused in Orange County, but we’re starting to look in other markets because opportunities are drying up in Orange County,” he said.
The firm’s focus will shift to the Inland Empire and San Diego County, but not the Los Angeles area, where from past experience Knapp said he knows there are few development opportunities.
Currently, The Brookhollow Group owns 1.5 million square feet of office and industrial space in Orange County, having divested itself of holdings in other areas, including a large portfolio in Las Vegas.
Kevin Shannon of Grubb & Ellis’ South Bay office and Jim McFadden of the firm’s Anaheim office represented both Brookhollow and Argent Ventures in the 4201 Bonita Place transaction. n
