SANTA ANA, Calif. –– Cushman & Wakefield announced the firm has advised the sale of a ±4.9-acre site containing three multi-tenant office buildings leased on a short-term basis in Santa Ana (Orange County), California. Terreno Realty Corporation, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired the property at 1720 E Garry Avenue for approximately $14.8 million. The buyer plans to demolish the existing office structures to construct a new industrial project.
Cushman & Wakefield’s Rick Ellison, Jeff Chiate, Mike Adey, Brad Brandenburg, and Matthew Leupold of the firm’s Capital Markets Team in Orange County represented the seller, Greenlaw Partners, in the transaction.
After redevelopment, expected to be completed in the first quarter of 2025, the property will contain a 91,500 square foot rear-load industrial distribution building with ten dock-high and two grade-level loading positions for a total expected investment of $40.6 million.
The redeveloped property is 100% pre-leased to a provider of temperature-controlled life sciences supply chain solutions, expected to achieve LEED certification and the estimated stabilized cap rate is 5.1%, as announced by Terreno.
The property is located immediately adjacent to the Costa Mesa Freeway (CA 55) and less than two miles from the intersection of CA 55 and I-405 and the John Wayne Airport in Orange County.
“Given the ongoing demand for either new or modern, high quality industrial product that is well located, combined with the ongoing challenges the office market faces, particularly for older product, we continue to see investors/developers target these types of properties for conversion opportunities in Orange County and across Southern California. And in the case of this forward-funded investment sale, the property is already 100% preleased exemplifying the success this strategy is having,” said Executive Vice Chair Rick Ellison.
