A multiblock stretch of commercial sites straddling the city lines of La Palma and Buena Park has become a center—in more ways than one—of commercial development opportunities in North Orange County.
Notable projects now being considered include a potential redevelopment of a nearly 100-acre commercial site—north of the Artesia (91) Freeway, near the intersection of Valley View Street and Orangethorpe Avenue—into a mixed-use project featuring a hotel and condos.
It is being touted as the biggest proposal in the works for La Palma in years.
A series of other nearby transactions—including work being done to the largest industrial building in OC currently on the market for lease—hints at increased investor interest in the area, as well.
Eight88’s Vision
Frequent Laguna Beach and Anaheim investor Eight88 Hospitality last month was reported to be in discussions with La Palma city officials to develop a mixed-use plan for a 114-acre site in the city now holding office and industrial buildings.
An undetermined portion of the existing property on the site would in theory make way for the proposed development, which could include a hotel, residential units and retail options.
Eight88 approached the city last year with plans for a major redevelopment of the property, which it does not yet own.
“This is a great location in the middle of Orange County that needs stimulation,” said Katie Wanamaker, Eight88’s project manager for the proposed development.
The Mission Viejo-based firm’s area clients include the Queen Mary in Long Beach, as well as two hotels and The Rooftop Lounge in Laguna Beach.
It entered into an exclusive negotiation agreement with La Palma that allows up to five years to finalize a plan, though the company expects “to move much faster than that,” Wanamaker said.
“We are still in talks with the city and our architects to determine the best use and layout for the site.”
One of the items that needs to be finalized is the exact location of the development, and what would need to make way for the new construction.
The location is described as “north of Orangethorpe Avenue, south of Fullerton Creek, east of Coyote Creek, and west of Valley View Street,” according to city documents.
Businesses in that area include Kaiser Permanente and a La Quinta Inn & Suites. It’s also home to Centerpointe La Palma, a 525,560-square-foot, 10-building business park that’s owned by Irvine-based Greenlaw Partners.
Greenlaw bought the 42-acre property—La Palma’s largest office park—in 2017 for about $106 million in a venture with New York-based Westbrook Partners. The park’s buildings are on separate parcels that could provide for flexibility in terms of individual property sales or redevelopment, but there’s been no indication from the owners that they’re part of Eight88’s plans.
The bulk of the 42-acre building complex is likely to be left alone, according to Wanamaker. That would likely mean that an assortment of a dozen or so industrial buildings surrounding Centerpointe La Palma owned by others would hold much of the new development, based on city descriptions of the project.
Los Angeles-based Morphosis is the architect for the proposed project, which would include up to four condominium towers with as many as 1,000 units, a 300-room full-service hotel, a central park, 1 million square feet of retail and entertainment venues, eight “concept-focused restaurants and pop-up eateries,” 2,000 parking spots and possible street and freeway reconfiguration to increase capacity.
The project could at least quadruple the city’s tax revenues, according to city documents.
Eight88 is exploring purchase options for the site, and will “work with existing businesses about relocation options.” Once that is finalized, it will return to the city to negotiate final terms for a master development agreement.
The initial response has been “fantastic,” Wanamaker said.
“Who wouldn’t want their city to have a large, brand new development that will only spur more development?”
Smaller Sales
Greenlaw Partners seems to be eyeing investment opportunities of its own for the immediate area.
The 10-building multitenant complex it bought two years ago includes a seven-story office building, two four-story offices, and a collection of single-story office and research and development buildings.
Some of those smaller building are being sold off, including a 22,271-square-foot, single-story property at 28 Centerpointe.
Window manufacturer Norman International Inc. paid $6.1 million, or about $274 per square foot, for the building, according to property records.
Brokerage reports indicate that at least one other part of the business park appears to be up for sale, a 20,971-square-foot building at 24 Centerpointe that it paid $4.2 million for in 2017.
Center of Confusion?
Centerpointe La Palma is unrelated to Placentia’s new, similarly named transit-oriented development 10 miles to the east (see story, page 22).
It’s also not to be confused with the 1.1 million-square-foot CenterPoint SoCal Logistics Center, one of the largest industrial buildings in Orange County.
The similarities in names are a coincidence. The industrial building at 6800 Valley View, which is across the city line in Buena Park, is owned by Oakbrook, Ill.-based CenterPoint Properties.
That company is concluding upgrades to the Buena Park facility as it looks to bring on new tenants, hiring CBRE Group Inc. to lead leasing efforts.
CenterPoint Properties paid $131.3 million in 2017 for the building, formerly home to a JCPenney Co. distribution center. It paid the Texas-based retailer nearly $119 per square foot for the building, in one of the largest single-building industrial sales in Orange County in years.
The site is three miles northwest of Knott’s Berry Farm.
Upgrades currently underway include a new ESFR sprinkler system, adding truck positions, improving the large truck courts and façade renovations.
It will be available for tenants in July.
