Panattoni Development Co. has put nearly a million square feet of its recently built industrial center in Anaheim on the sales block.
The Newport Beach-based developer recently listed for sale seven buildings at the Anaheim Concourse, the 80-acre project it developed on land near the Riverside (91) Freeway that once served as a campus of aerospace giant Boeing Co.
The buildings total 965,255 square feet and comprise the newly built for-lease portion of Anaheim Concourse—the largest industrial development in Orange County in over a decade.
Privately held Panattoni and its financial partner in the Anaheim Concourse project, New York-based Clarion Partners, are seeking a price approaching $200 million for the properties, according to real estate sources familiar with the deal.
Bids should come in over the next month, they said.
A sale near $200 million would be the most expensive industrial sale in Orange County in several years. A $200-per-square-foot deal also would translate to a capitalization rate below 4%.
The seven buildings, built in 2014 and 2015, are 86.3% leased, according to marketing material from CBRE Group Inc., whose brokers have the listing for the property.
The buildings bring in about $6.8 million in rents annually, and leases there have annual rental increases averaging 3%, according to CBRE’s marketing materials.
Notable tenants at the buildings—between La Palma Avenue and Miraloma Street—include Walt Disney Parks and Resorts, which uses a 161,794-square-foot building to support its local theme park and resort operations.
Other tenants include L&L Food Holdings, Longust Distributing Inc., Nellson Nutraceutical and Phillips Feed Service.
Six of the buildings are full, according to CBRE’s data.
One—a 132,231-square-foot building at 3335 E. La Palma Ave.—is empty.
None of the existing leases expire until 2021, marketing materials show.
Panattoni bought the land for Anaheim Concourse more than eight years ago, following Boeing’s departure from its longtime campus in northeast Anaheim.
The developer held off groundbreaking for several years after the last recession.
Construction didn’t begin in earnest until early 2014.
A sale would include most of Panattoni’s remaining Anaheim Concourse holdings, which total about 1.4 million square feet and 14 buildings. The balance of the development was built as for-sale properties.
The project represents 9.5% of the Class A industrial space in North OC, according to CBRE, whose Darla Longo, Barbara Emmons, Rebecca Perlmutter, Michael Kendall, Brad Bierbaum and Ryan Peterson have the listing for the property.
The planned sale comes about five months after Steve Batcheller, former head of Panattoni’s investment and development activities in Orange County and the Inland Empire, left the company to start venture Batcheller Equities Inc.
The Newport Beach-based startup plans to invest in existing industrial and office properties that have value-add opportunities, and also will pursue ground-up development, Batcheller said in February.
