2019 is shaping up to be an eventful year for retail developer LAB Holding LLC, the Costa Mesa firm behind some of Orange County’s hipper shopping and dining spots.
The Business Journal earlier this month was first to report that the developer was gearing up for its largest project, a 51,000-square-foot food hall at The Press, a creative office project in Costa Mesa, near the city’s Ikea shopping center.
LAB Chief Executive Shaheen Sadeghi said he has an option to purchase the retail portion of The Press—expected to hold at least 50 restaurants and retailers—and intends to do so. The rest of The Press is headed by Foster City-based commercial developer SteelWave.
A rare sale of some buildings in Anaheim could help fund that deal.
Center Street Promenade, a trio of retail properties that LAB owns in downtown Anaheim totaling 23,000 square feet, was recently put on the sales block for a combined $13.6 million. That works out to a price of nearly $600 per square foot.
The three properties are about half a mile from another notable Sadeghi property, the 40,000-square-foot Anaheim Packing House.
Sadeghi told the Business Journal that it’s the first time he’s looked to sell in his 26 years of operations.
The company’s “reinvesting in new projects,” he said.
CBRE Group Inc.’s National Retail Partners-West brokerage team, which is based in Newport Beach, is handling the sale of the buildings on Center Street.
The buildings, which are listed for sale individually, include an 11,175-square-foot property with a $6.7 million asking price; a 6,203-square-foot building on sale for $4.2 million; and a $2.7 million, 5,632-square-foot property.
Each building is fully occupied to tenants including Goodwill and nearly a dozen eateries, like Pour Vida, Cervantes Mexican Kitchen and Lag Bar.
In another first, LAB Holding appears to be getting into residential development for a project across the street.
The firm recently received entitlements to convert a parking structure at 350 W. Center Street Promenade into a 57-unit apartment complex that could include 16,500 square feet of commercial and office space, and a new parking garage with 148 spaces.
Aliso Viejo-based Elements Architecture is designing the project, called B.A.R.N., short for Business Arts Residential Network.
New CEO
Bixby Land Co. in Newport Beach has promoted Aaron Hill to the chief executive role; he already counted the president position at the commercial developer and investor.
Hill takes over the chief executive role from Bill Halford, who was at the helm for 12 years and died last year.
Prior to becoming president in January 2018, Hill was executive vice president and chief operating officer.
In his 13-year career with Bixby, Hill has been involved in more than $2 billion in investment transactions and the development or renovations of 8 million square feet of office, R&D and industrial properties.
Hill is looking to double the company’s $1 billion portfolio within the next five years by expanding into new markets, like Denver and Dallas, and diversify its business lines by bringing on institutional capital partners.
“We are always looking for opportunities to convert underutilized assets into contemporary office spaces, as well as industrial assets,” Hill told the Business Journal. “Our balance sheet today is in a very strong position, and I look forward to continuing to work on our long-term strategy for our shareholders.”
Breaking Ground
Newport Beach-based residential developer Intracorp has broken ground on a 290-unit apartment building project in downtown Fullerton.
The project is on the site of a former car dealership at 600 W. Commonwealth, about a mile from the Fullerton train station. It will have studio, one, two- and three-bedroom plans ranging from 550 to 1,275 square feet.
It’s designed by architecture firm TCA Architects and interior design company Davis Ink.
Amenities include a pool, co-working center, coffee bar, fitness center and ground floor retail opportunities.
The company plans to start preleasing next year for the project, which is being developed in partnership with Grosvenor Americas. The project’s been in the works for a few years, and was approved about two years ago.
Intracorp paid about $20 million for the land in 2018, according to CoStar Group Inc. records.
In addition to apartments, Intracorp also builds for-sale homes. It posted nearly 40 sales in OC last year and currently has projects underway at the Irvine Business Complex.
