One of five Orange County industrial buildings acquired by Rexford Industrial Realty Trust Inc. as part of a $191 million portfolio deal might not stay under the ownership of the Los Angeles-based investor for too long.
I reported last week on Rexford’s planned acquisition of nine industrial buildings in Southern California owned by affiliates of Newport Beach-based CT Realty Investors in one of the largest recent portfolio sales of area industrial properties.
The 1.5-million-square-foot portfolio traded hands for about $125 per square foot in a deal that closed on April 18.
Among the OC properties included in the deal is 2811 Harbor Blvd., a nearly 127,000-square-foot building just off Segerstrom Avenue in Santa Ana.
CT Realty paid a reported $13 million for the building in late 2014 and renovated the property, which was empty at the time.
Robinson Pharma Inc., a Santa Ana-based maker of soft gel vitamins and dietary supplements that occupies space in several area facilities, last year signed a 10-year deal to lease the entire property.
It pays about 63 cents per square foot, per month, according to regulatory filings, and has the option to buy the building next year for $18.7 million, or about $147 per square foot.
“The tenant has indicated that it intends to exercise its option in 2017,” Rexford said in regulatory filings this month.
Robinson Pharma leases and owns more than 300,000 square feet in five facilities in Santa Ana and Costa Mesa that it uses for manufacturing, warehousing and its headquarters.
Other local properties Rexford bought from CT Realty are in Irvine, Garden Grove and Santa Ana. None of the other buildings are reported to have buy-back clauses for existing tenants.
Properties in the deal that are outside of OC are in Fontana, Poway and City of Industry.
San Juan Sale
The San Juan Medical Center, a two-story, 40,551-square-foot medical office building in San Juan Capistrano that opened last year, has been sold to a Chicago-based real estate investment trust.
JLL Income Property Trust, a nontraded REIT that invests in a variety of property types, said it paid about $27 million for the medical office building, which was developed by Irvine-based Accretive Realty Advisors Inc.
The sale works out to nearly $665 per square foot, roughly double the going rate for recent traditional office sales in South OC.
The property, next to the Santa Ana (I-5) Freeway and a few blocks north of Ortega Highway, opened last year. It’s fully leased, with MemorialCare Medical Foundation and Fresenius Dialysis as its largest tenants.
It’s the first exclusively medical class A office building constructed in San Juan Capistrano in the past 25 years.
It’s the only OC property owned by JLL Income Property Trust, which owned 54 properties in the U.S. at the end of last year. Office, industrial, apartment and retail buildings have been its primary source of acquisitions.
The deal “represents an excellent continuation of our medical office investment strategy,” said Allan Swaringen, JLL Income Property Trust chief executive, in a statement.
$250M Push
Harbor Associates, an investment and development group based in Long Beach, has acquired its third OC property in less than a year for a creative-office conversion.
The partnership between Irvine-based Bascom Group and Harbor Associates Ventures in Long Beach formed about a year ago. It recently closed on the purchase of
3 Burroughs, a 37,000-square-foot former flex office near the southern edge of the former El Toro Marine base in Irvine.
The property sold for about $7 million, according to CoStar Group Inc. estimates.
The new owners are planning a major redevelopment of the property into creative-office uses. They said they’ve rebranded the project as Bespoke Irvine.
Harbor Associates has similar plans for comparably sized buildings in Lake Forest and Tustin.
The venture plans to invest over $250 million in Southern California for other creative-office projects over the next year, according to Harbor Principal Justin Loiacono.
