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Sunday, Aug 14, 2022

Edwards Adds Another Office to Portfolio

Edwards Lifesciences Corp. (NYSE: EW), Orange County’s largest publicly traded company, has added another office building to its rapidly expanding headquarters campus.

The medical device maker recently completed the purchase of 3009 Daimler St., a roughly 52,000-square-foot building that sits on the Santa Ana side of Alton Parkway, near Red Hill Avenue.

Edwards’ main campus, on the other side of Alton, is in Irvine.

Property records indicate that Edwards paid about $12.1 million for the building, or nearly $230 per square foot.

A sign of the slow commercial real estate market amid the pandemic: it’s the largest office sale in the airport area in the past three months, according to CoStar Group Inc. records (see page 11 for more).

The building was sold by a venture headed by Mark Moshayedi, co-founder of Santa Ana-based computer storage device maker STEC Inc., property records show. STEC previously used the building for its operations.

STEC was sold in 2013 to a unit of Western Digital Corp. Moshayedi now heads Space Investment Partners, an Irvine-based commercial real estate operating company.

A separate, smaller building next door on Daimler Street was sold a year ago to another buyer by Moshayedi and his family for a reported $6.3 million, or $253 per square foot.

$65M+ of Deals

Edwards makes products for treating structural heart disease, specializing in artificial heart valves, as well as critical care and surgical monitoring devices. It’s valued at nearly $45 billion; its shares are up some 30% over the past year.

It has been an active area investor in real estate in recent years, snapping up several existing buildings in the vicinity of its headquarters for its operations. The latest purchase puts its real estate purchases over the past three years at more than $65 million.

Three years ago, it paid a reported $18.5 million for a two-building property along Alton that’s next to its new acquisition.

In 2017, the company’s local employee base was approaching 4,000, now that figure is closer to 4,500 workers and expected to grow further with a multibuilding expansion project now well underway with its first phase of construction.

The collection of new buildings is expected to ultimately total about 500,000 square feet, and include two office and laboratory buildings, an employee amenities facility, and a parking structure.

Its existing main campus currently runs some 650,000 square feet. The facilities are used for research and development, regulatory and clinical affairs, manufacturing, marketing, and administration. A large portion of the company’s non-manufacturing employee base is working remotely during the pandemic.

Edwards indicated in state regulatory filings last year that it planned to invest $239 million in the three-year expansion project in Irvine.

The expansion was made possible in 2018 when Edwards bought the former headquarters of carpet manufacturer Royalty Carpet Mills Inc., a 9-acre site next to Edwards’ offices that was put up for sale in 2017 after Royalty Carpet closed.

Edwards paid a Royalty Carpet affiliate $36 million for the site, or $4.7 million an acre, property records indicate. The carpet company’s buildings on the site have since been demolished to make way for the ongoing expansion.

B. Braun Purchase

Another medical device maker making real estate deals nearby is Germany’s B. Braun Group of Cos., Orange County’s second-largest foreign-owned company with nearly 1,700 local employees.

The medical and pharmaceutical device company, which ranks No. 4 among area device makers by employee count, recently paid nearly $8 million to buy a 30,600-square-foot industrial building at 2206 Alton.

It is next to B. Braun’s Irvine sprawling campus near the Diamond Jamboree shopping center.

The company already leased space at the building, and purchased the facility from a family trust, property records indicate.

B. Braun’s nearly 30-acre campus is about a mile from the headquarters of Edwards Lifesciences.

It’s also getting a major revamp. B. Braun said last year it planned extensive renovations to its Irvine facilities as part of a $1 billion investment in new and enhanced IV therapy manufacturing facilities it has across the U.S.

The Irvine facilities will see modernizations to its manufacturing facilities to help “expand capacity of critical IV fluid production,” it said in a statement at the time.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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