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Wednesday, Aug 10, 2022

Industrial Developer Panattoni Doubles Up in Tustin

Industrial developer Panattoni Development is expanding its holdings along the increasingly active boulevard of Myford Road in Tustin.

An affiliate of the Irvine firm, which bills itself as one of the largest privately held, full-service real estate development companies in the world, having developed more than 540 million square feet of space over its history, recently completed the purchase of 14351 Myford Road, a nearly 90,000-square-foot industrial building built in the 1970s and home to several tenants.

Panattoni paid about $19.3 million for the site, which is on some 3.6 acres of land, according to property records. The deal works out to a price of nearly $215 per square foot for the existing industrial building, or around $5.3 million an acre.

Panattoni bought the property via an LLC with ties to Chicago’s Revantage, a lending company that works with Blackstone Group, records indicate.

It bought the Tustin building from an affiliate of Orange County Research Center, a private medical facility founded in 1985 that recruits and manages clinical research protocols for pharmaceutical and biotechnical companies. The research center paid $4.9 million for the site in 2003, records indicate.

Next Door Development

Plans for the just-bought site haven’t been disclosed, and there’s no records of a development plan for the property at the city’s planning department.

The building is next door to a roughly 220,000-square-foot industrial building now under construction by Panattoni at 14451 Myford Road.

Panattoni bought that nearly 7-acre site about two years ago for $32.4 million and has since razed the prior buildings at the property to make way for the new development. Signage at the property indicates Link Logistics Real Estate, a unit of Blackstone, will be affiliated with the project.

Busy Boulevard 

A 1-mile stretch of Myford where both Panattoni properties are located—which straddles both Tustin and Irvine—is among the busier streets of late, in terms of real estate moves.

Irvine’s 14600 Myford Road building counts the headquarters of Rivian Automotive Inc. (Nasdaq: RIVN), and the electric vehicle maker has leased other sizeable facilities in the immediate vicinity the past two years as it has built up its local hub. Dozens of the company’s inaugural vehicles are now on-site at its headquarters.

The street also holds the headquaters of Tustin-based mortgage lender New American Funding, one of Orange County’s fastest-growing private companies the past few years.

The mortgage company’s founders, Rick and Patty Arvielo, near the start of the year sold, at a big profit, a high-end manufacturing and office building along Myford Road that’s a few doors down from its headquarters.

An affiliate of real estate developer and investor Hines paid $50 million, or roughly $445 per square foot, for the 112,400-square-foot building, dubbed the Radius.

It’s the biggest commercial property sale in Tustin in over two years, according to data from real estate market tracker CoStar Group Inc. 

The Arvielos paid $22.5 million for the building at the end of 2017, property records indicate.

Radius is used by Tustin drugmaker Avid Bioservices Inc. (Nasdaq: CDMO), which has put tens of millions of dollars into its area facilities, to boost capacity for its contract development work for other pharmaceutical companies. 

Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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