Renovations and a major expansion are being considered for a 95,000-square-foot Tustin building that traded hands last month for nearly $20 million.
Newport Beach-based EBS Realty Partners closed on the purchase of 14192 Franklin Ave. for about $207 per square feet.
It’s the first Orange County purchase for the commercial real estate investor, which typically invests in and develops industrial and office projects in the Inland Empire.
The site, which is just south of the Santa Ana (5) Freeway, is currently being eyed for redevelopment, with potential plans to build a new 45,000-square-foot industrial building and renovate the existing Class B flex property.
“We have been in search of infill properties that we can retrofit and reposition for industrial warehouse and distribution use,” Principal Patrick Remolacio said. “There’s a dearth of industrial properties in the area, especially for e-commerce and last mile order fulfillment.”
Lack of Parking
A venture between San Francisco-based Stockbridge Capital Group and Long Beach’s Harbor Associates sold the vacant building to EBS after a previous plan, which would have converted the industrial space into a creative office building, fell through due to a lack of parking.
The Irvine office of Cushman & Wakefield Inc. brokered the deal.
EBS is in talks with the city of Tustin to receive approvals for its plans to demo part of the existing building, reducing its size to 75,000 square feet and adding speculative office space, and building a new Class A industrial property near the corner of Franklin and Michelle.
These planned renovations may be nixed or altered if EBS finds a tenant for the existing property in the coming months.
“If we find a tenant, we will move forward with tenant improvements that are specific to the company’s needs,” Remolacio said.
If EBS moves forward with redevelopment plans, the site could hold one or several tenants.
