Woodland Hills-based The Voit Cos. plans to break ground this summer on a 500,000-square-foot, $35 million industrial complex in Brea, one of Orange County’s largest speculative projects in recent memory.
Voit Brea Business Park is set to include 16 buildings ranging from 13,000 to 51,000 square feet apiece. The 26-acre project is the first of its magnitude in North County in a decade, according to Mitch Zehner of Voit Commercial Brokerage’s Anaheim office. With a scarcity of large plots in OC, developers have turned to the Inland Empire for large-scale industrial or research and development projects. Three years ago, though, Zehner said he came across 28 acres tucked away in Brea’s industrial core. Large warehouses, industrial buildings and R & D; space surround the Voit Brea site.
“We’re just filling in the pie that never got filled in the first place,” said Brian Malliet, vice president of Voit Development Co.
Voit is betting the project can withstand an economic slowdown. Unlike South County, new developments aren’t as common in Brea and other parts of North County. Brea also sees more economic overlap with the growing cities of Diamond Bar, Walnut, Santa Fe Springs and other parts of southeast Los Angeles County. Malliet’s contention is Brea stands to fare better than the Inland Empire and other areas in a downturn.
“If we go into a flat or recessionary mode, we’re in good shape,” he said.
Oil refiner Tosco Corp. has used the Brea land as a storage site for old equipment. Old Greenwich, Conn.-based Tosco, which is being bought by Phillips Petroleum Co., plans to keep 2 acres for use as a monitoring site for its refineries in Santa Fe Springs. Voit Commercial Brokerage represented Voit Development and Tosco.
From initial inquiries, Voit Commercial’s Zehner said he expects “at least half of the buildings will be sold to existing Brea users that will be expanding into larger buildings and upgrading their facilities.”
Though no prospective buyers were named, neighbors include an office of Fullerton-based Beckman Coulter Inc., an Albertson’s Inc. distribution center, vitamin maker Nature’s Best, American Suzuki Motor Corp. and TRW Inc.
Financing for the project still is being worked out, but Voit Development’s Malliet said, “We do 90% to 95% of our financing with Wells Fargo Bank.”
Voit construction arm Valley Commercial Contractors LP plans to build the project. Irvine-based Ware & Malcomb Architects Inc. is handling design with Development Resources Co. providing engineering services. n
