North Palisade Acquires Irvine Asset for $11MM, Plans New $24MM Industrial Development

North Palisade, Irvine, Los Angeles, Warmington Capital Partners, Orange County, Irvine Business Complex

Irvine, CA, June 29, 2022 – North Palisade Partners, a Los Angeles, CA-based industrial investment and development firm, acquired Palisade Red Hill, a 2.45-acre industrial property in Irvine, CA from Warmington Capital Partners for $11 million. The site within the Irvine Business Complex includes an existing 36,500-square-foot office building that will be demolished and replaced with a state-of-the-art Class A infill industrial warehouse.

Located at 18011 Mitchell S., less than a mile from John Wayne Airport (SNA), the existing property was built in 1978 and had been occupied by the same company for more than three decades. The newly planned $24-million development is expected to be delivered in early 2025.

North Palisade Partners’ Joe Mishurda, Managing Partner at the firm, said, “We continue to seek well-located assets that provide opportunities to add value either through repositioning, renovation, or redevelopment. In the case of Palisade Red Hill, we plan to replace the existing 1970’s era building with a modern 48,000-square-foot industrial facility that could accommodate a local manufacturing or logistics user.”

Topside Real Estate’s Rob Rader and Mac Mace brokered the transaction. Rader notes, “The useful life of office buildings is typically 40 years or less, so this asset has run its course. A significant deal driver is the fact that the market is experiencing robust demand for state-of-the-art versatile industrial facilities that feature high clear heights.” 

North Palisade has an opportunity to deliver product in a sub-market considered one of the most desirable in Orange County. It is an area of Irvine where the existing stock of industrial buildings is supply constrained due to lack of developable land and minimal availability of adequately sized parcels.

Irvine is a highly diverse market and a world-class city. The intrinsic value of the market is highly recognized by companies from Asia and the Middle East. The infill site is ideally situated on a highly visible intersection of Mitchell and Red Hill near the I-405 and I-55 freeways making it a preferred location for companies serving Orange County. The central location is surrounded by a diverse workforce and delivers synergistic opportunities for companies in such sectors as life sciences, automotive technology and aerospace industries.

Orange County has been a long-time home to automotive companies like Tesla and Hyundai. The area now is seeing an influx of electric vehicle manufacturers like Lucid and Rivian, companies in the battery sector, as well as a resurgence of aerospace occupiers including satellite off-shoots of SpaceX.

Mishurda adds, “The vision for this site aligns with North Palisade’s investment strategy of creating long-term value through the acquisition and development of best-in-class industrial facilities in key West Coast logistics markets. The industrial property sector continues to perform well as demand remains strong for last-mile or distribution facilities that are near population bases.”

North Palisade is expanding its footprint in core Western U.S. supply chain and logistics markets. The company’s growth plans include key logistics markets in Northern California, Southern California, Las Vegas, Reno, and Seattle. North Palisade has added five industrial and self-storage development properties totaling over $150 million to its portfolio in California so far this year.

About North Palisade Partners

Based in Los Angeles, California, North Palisade Partners LLC is a real estate development and investment firm focused on industrial and self-storage real estate in California and select western markets. Since its founding in 2018, the company has acquired 17 industrial and self-storage assets representing over $500 million of total value. North Palisade Partners specializes in opportunistic and value-add investment strategies, including existing building acquisitions, land entitlement and ground-up development.