Irvine-based developer Sares-Regis Group has added another large chunk of land near Long Beach Airport to its portfolio.
The company—one of the more active industrial developers in Southern California of late—said this month it had bought a 160-acre parcel of land at Douglas Park in Long Beach, a development near the city’s airport that was last used by Chicago-based Boeing Co. for aircraft manufacturing.
Terms of the deal, made with the aerospace and defense giant’s Boeing Realty Corp. land division, were not immediately disclosed.
Peter Rooney, president of Sares Regis’ commercial investment division, described the purchase as “one of the largest and most exciting” in the company’s history.
The developer said the land has the potential to hold up to 3.2 million square feet of office, industrial and retail space. A timeframe for any new development on the site was not announced at the time of the sale.
The 160-acre transaction is made up of two 80-acre parcels and includes two former aviation production facilities that were built at the outset of WWII, including one that’s topped by an iconic “Fly DC Jets” neon sign.
Sares-Regis also has development underway on a smaller, 33.6-acre portion of land in Douglas Park that it already owned.
It’s building seven high-end industrial properties on that site—now called Pacific Pointe—that will run about 677,000 square feet and be offered for sale or lease.
Sares-Regis executives have placed the total value of the 33.6-acre Pacific Pointe project on completion at about $95 million. It’s said to be the first development of for-sale buildings in the South Bay in five years.
Douglas Park totals about 260 acres in total. This month’s transaction closes out land sale at the property, according to Sares-Regis, which is now the largest property owner in the development.
Other developers on the land include Santa Ana-based Nexus Cos., which is building a four-story, 159-room Courtyard by Marriott hotel next to the airport. The project is going up on a 4.5-acre site at Douglas Park.
The new owners of the Anaheim GardenWalk shopping center may have gotten a better deal on their purchase than first expected.
The troubled mall, which has struggled to get is occupancy rates above 50% since its 2008 opening, sold late last month to a trio of New York-based investment firms: Arcturus Group LLC, Avenue Capital Group and Elliott Management Corp.
Terms of the sale were not disclosed at the time the deal was announced.
The Business Journal noted in an Oct. 8 story that the 466,417-square-foot center—located across from Disneyland and the Anaheim Convention Center—was expected to fetch offers in the $90 million to $100 million range when it was put on the market early this year.
Recent data from CoStar Group Inc. places a $73 million sale price on the GardenWalk transaction.
That figure, if correct, works out to about a $157 per square foot price for the property, which is now listed as being 43% leased. That price also is about a third of the value of the $210 million loan that was originally taken out to finance the property’s construction.
The priciest retail sale in Orange County so far this year was June’s sale of the The Orchard shopping center in Lake Forest.
The Orchard changed hands for $122 million, or about $434 per square foot for the 281,000-square-foot property, which is about 94% full.
An affiliate of Hartford, Conn.-based Penwood Real Estate Investment Management LLC has bought a 345,000-square-foot industrial building next to the SouthCoast Collection shopping center in Costa Mesa.
The property, at 1683 Sunflower Ave., changed hands for a reported $27.2 million, or about $79 per square foot, according to brokerage data from the Irvine office of Colliers Inc., making it the priciest industrial transaction of the past quarter.
The two-tenant building was acquired with a 112,000-square-foot vacancy. The property previously was used by Nissan Motor for their regional offices.
Mitch Zehner of Voit Real Estate Services’ Orange office and Michael Hartel of Voit’s Irvine office represented Penwood in the sale, and are handling leasing for the building, which fronts the 405 freeway.
An Oct. 8 story on the planned redevelopment of an office site in Newport Beach into a 1,244-home project by Uptown Newport LP understated some of the tenant relocation challenges the developer faces at the project. The first phase of the proposed development at the project near the Newport Beach and Irvine city line calls for the demolition of a 127,000-square-foot building at 4311 Jamboree Road. Brokerage reports list the so-called “half-dome” building as empty, but employees at Jazz Semiconductor Inc. note that they currently occupy the building—which the developer wants to demolish as soon as 2014—along with a larger manufacturing facility at the campus that Jazz occupies under a longer-term lease.