McGwire Buys Diamond Lot at Shady Canyon
By DANIEL D. WILLIAMS
Costa Mesa-based De Young Construction Co. snatched up 4.1 acres in the heart of Anaheim’s sports district with plans for an as yet undetermined 178,000-square-foot mixed-use project. But that will have to wait, for now.
Although De Young paid $3.27 million for the land, there are no immediate plans for construction on the site. For now, the general contractor and developer will sit on the prime property at 1751 S. State College Blvd., across the street from Edison International Field, and content itself with revenue from the tenant, an El Torito restaurant. Another building, recently vacated by Charlie Brown’s, is available for lease and another potential source for revenue.
“They seem to be firmly positioned for a long-term investment and willing to take on the current tenant,” said Gary Allen, a broker with Grubb & Ellis’ Newport Beach office.
Allen represented the seller, Prandium Inc. of Irvine, a troubled restaurant operator that last year sold the El Torito chain and this month announced the sale of the Hamburger Hamlet chain as part of a debt restructuring, contingent on a bankruptcy filing and reorganization. Prandium also operates the Koo Koo Roo and Chi-Chi’s restaurant chains.
Officials from De Young were unavailable for comment, but Blake Woodward of CB Richard Ellis’ Anaheim office, who represented De Young in the deal, said the firm plans to hold the entitled land for three to five years, waiting for market conditions to improve.
“There’s potential to develop the land much like Stadium Crossing, across the street,” Woodward said. “But that has yet to be determined.”
Demand was strong for the property, with offers coming primarily from retailers and restaurateurs, according to Woodward. Potential buyers recognized the property’s attractive location and an expected recovery in the market, he said.
“There were also potential buyers who were contemplating developing several small office buildings for sale,” Woodward said. “Most of the buyers felt the market would be back in the next 24 to 36 months.”
The market is in a bit of a hiccup, according to Mark Friend, a broker in the Anaheim office of CB Richard Ellis who specializes in the office market.
“But in this area, we believe it will be short-lived,” Friend said.
“There’s so little new construction besides Stadium Gateway and there is strong demand for space,” Friend said. “And it’s clear the area needs more retail. Stadium Crossing has been a home run. Everything in the area is packed for two and a half hours at lunch.”
Trammell Crow announced plans in the summer for a 383,250-square-foot office campus on 24.5 acres of undeveloped land behind the Arrowhead Pond.
Trammell Crow’s is the first project that addresses what tenants are demanding, according to Friend.
“Tenants want that campus environment,” he said. “The Irvine Company has been doing it for years in the South County and now we’ll see it here.” n
