Dermody Properties is planning to build another industrial building in Irvine, at a site adjacent to a Five Point Holdings LLC (NYSE: FPH) lot it recently bought in the Great Park Neighborhoods.
The Reno, N.V.-based logistics developer this month paid $21.1 million for a 4.3-acre parcel next to the 5.9-acre lot it recently bought from Irvine-based master developer FivePoint last month.
The second site, located at 2 Sterling near the Santa Ana (5) and San Diego (405) Freeway junction, will house a new 92,000-square-foot logistics facility. Dermody bought the property from Tampa, Fla.-based bulk water and dispenser company Primo Water Corp. (NYSE: PRMW), which was valued at $2.4 billion as of last week.
“This was a rare opportunity to acquire industrial land in the city of Irvine with immediate access to the I-5 and I-405 freeways,” Dermody SoCal partner Matt Mexia told the Business Journal.
The site is “close proximity to a wide array of amenities provided by the Irvine Spectrum Center … will assist future customers in attracting employees.”
Brokers involved in the deal included Ross Bourne and Keith Black of CBRE.
LogistiCenter Irvine
Dermody’s acquisition of 2 Sterling comes weeks after it paid FivePoint $28.3 million for an adjacent 5.9-acre parcel at the corner of Alton Parkway and Muirlands Boulevard. The company plans on building a roughly 133,000-square-foot facility on that lot; for more details, see the Jan. 15 print edition of the Business Journal.
Combined, both buildings on the former FivePoint lot and on 2 Sterling will run about 225,000 square feet.
Dermody aims to deliver the project, dubbed LogistiCenter at Irvine I & II, by the fourth quarter of this year, officials said.
This marks Dermody’s second two-building industrial development in the area.
The company last year completed a pair of industrial buildings in Tustin: LogistiCenter at 55 I & II. That project spans over 311,000 square feet along the Costa Mesa (55) Freeway.
“LogistiCenter at 55 in Tustin was a unique prospect for us to establish a presence in the Orange County market by delivering highly visible, cutting-edge logistics facilities,” Mexia said.
Selling Spree
Commercial land in Irvine isn’t the only asset Primo Water has shed this month.
The company recently closed the sale of part of its international businesses for $575 million.
Though the deal did not include the company’s Aimia Foods, U.K., Portugal and Israel businesses, Primo Water plans on selling those this year.
The transaction “simplifies and focuses Primo Water on our core pure-play North American Water Business,” Chief Financial Officer David Hass said in a statement.
