Panattoni Development Co., the most active industrial developer in Anaheim over the past decade, has started work on another project there, a multibuilding business park at the Placentia city line.
The Newport Beach-based developer recently kicked off work on Orange County Commerce Center, a four-building industrial project just off Miraloma Avenue that will total 232,000 square feet.
The project, on a 10.2-acre parcel on Van Buren Street, will have four high-end industrial buildings ranging from 47,813 square feet to 69,882 square feet. Each will include two floors of nearly 8,000 square feet of office space.
Panattoni—one of the country’s largest privately held industrial developers—is developing it in a venture with Des Moines, Iowa-based Principal Real Estate Investors.
The buildings, which make up the largest industrial development in Orange County breaking ground this year, are being offered for lease and should be completed early next year. Lease rates haven’t been disclosed yet.
Chris Migliori, executive vice president at the Newport Beach office of Daum Commercial Real Estate Services, has the listing.
Each building will likely be occupied by a single user, though different arrangements are possible, said Migliori, who also worked on the sale of the land to Panattoni early last year.
The developer paid a reported $17.7 million for the site about a mile north of the Orange (55) and Riverside (91) freeways interchange that previously held a strawberry farm.
The purchase involves two connected 5-acre parcels, one of which falls in Anaheim, the other in Placentia. Because the property cuts across two cities, a single-building project wasn’t a possibility.
The infill site is on the edge of the Anaheim Canyon business district, one of the biggest concentrations of industrial buildings in North OC, whose warehouse and distribution buildings base totals about 105 million square feet.
The area industrial vacancy rate is under 2%. Average asking rents increased 5.8% year-over-year in May, according to Migliori.
“The county’s fundamentals are exceptionally strong for industrial investment,” he said. “As demand continues to outpace supply, we expect an additional 4% to 6% increase in industrial rents in 2018.”
Panattoni’s project starts a few weeks after it sold its last development in Anaheim for a healthy profit, a 143,930-square-foot industrial building about seven miles away at 1730 S. Anaheim Way.
It opened about two months ago alongside the Santa Ana (5) Freeway and is leased to San Jose-based electrical contracting firm Rosendin Electric Inc. for its new Southern California headquarters.
Panattoni built it in a venture with fellow Newport Beach-based developer Batcheller Equities. The two sold the property last month to Los Angeles-based institutional fund manager American Realty Advisors for about $33.1 million, according to property records.
At $230 per square foot, it’s the highest square footage price on record for an area industrial property of 125,000 square feet or more, according to data from real estate market tracker CoStar Group Inc. The previous high-water mark for a large area industrial project was also a recent Panattoni development: seven buildings totaling nearly a million square feet at the Anaheim Concourse.
Panattoni built the buildings about three years ago on the city’s former Boeing campus, and it sold it in 2016 for $188 million, a record at the time at $195 per square foot.
The developer has built nearly 1.7 million square feet of space in the city over the past decade in a combination of for-sale and for-lease projects.