Terreno Realty purchased a low-level office property in Orange County, Calif., earlier this month for $14.8 million, the company announced, with plans to convert the site into industrial space.
The 4.9-acre site at 1720 East Garry Avenue in Santa Ana currently contains three multi-tenant office buildings, all leased on a short-term basis. Terreno plans to demolish the property, which it acquired from Greenlaw Partners, and redevelop it into a 92,000-square-foot, rear-load industrial distribution building.
The redeveloped property is already fully pre-leased to a “provider of temperature-controlled life sciences supply chain solutions,” according to the company. The redevelopment is expected to be completed by the first quarter of 2025, with a total investment of $40.6 million.
The sale and renovation of the property is indicative of the deteriorating office market in Southern California, particularly in Orange County, and also demonstrates the persistent demand for industrial space. Kearney Real Estate similarly plans to build a 164,000-square-foot industrial center in place of the existing Elevate@Harbor office campus in Santa Ana, while Blackstone (BX) (BX) sold two Santa Ana high-rise office buildings at a 36 percent loss earlier this year.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
Read More Channel, Industrial, life sciences, More, office, Sales, 1720 East Garry Avenue, Elevate@Harbor, Industrial real estate, Life Sciences, sales, California, Southern California, Blackstone, Greenlaw Partners, Kearney Real Estate, Terreno Realty Terreno Realty purchased a low-level office property in Orange County, Calif., earlier this month for $14.8 million, the company announced, with plans to convert the site into industrial space. The 4.9-acre site at 1720 East Garry Avenue in Santa Ana currently contains three multi-tenant office buildings, all leased on a short-term basis. Terreno plans to
Robert Khodadadian has long had a simple philosophy about selling real estate.The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.Commercial Observer