A global industrial developer has paid $19.3 million for a 90,000-square-foot industrial building in Tustin.
An affiliate of the Irvine-based Panattoni Development bought the building on 3.6 acres at 14351 Myford Road, the Orange County Business Journal reported. The seller was an affiliate of Orange County Research Center, which paid $4.9 million for the property in 2003.
The deal works out to a price of nearly $215 per square foot for the industrial building, or about $5.3 million an acre. Panattoni bought the property through a limited liability company with ties to Revantage, a Blackstone-owned lender based in Chicago.
Plans for the Orange County site were not disclosed and development plans have not been filed with the city.
Two years ago, Panattoni paid $32.4 million for a nearly seven-acre property next door, at 14451 Myford Road. After demolishing buildings onsite, the developer is now constructing a 220,000-square-foot industrial warehouse.
Signs at the site indicate Link Logistics Real Estate, an industrial unit of Blackstone, will be affiliated with Panattoni’s new project, the newspaper reported.
Panattoni Development, founded in 1986 by now chairman Carl Panattoni, has 46 offices worldwide and a portfolio of 544 million square feet, according to its website.
A one-mile stretch of Myford Road is among the more active streets for real estate development in Tustin and Irvine.
Electric vehicle-maker Rivian Automotive now counts 14600 Myford Road in Irvine as its corporate headquarters, and has bought other sizable facilities nearby.
The street is also home to Tustin-based mortgage lender New American Funding, one of Orange County’s fastest-growing private companies.
Earlier this year, New American founders Riak and Patty Arvielo sold a 112,400-square-foot manufacturing building on Myford Road to an affiliate of real estate developer and investor Hines, for $50 million. The deal came out to about $445 a square foot — the biggest commercial property sale in Tustin in more than two years, according to CoStar. The Arvielos paid $22.5 million for the building in 2017.
The building, dubbed Radius, is leased to Tustin-based drugmaker Avid Bioservices, which has sunk tens of millions of dollars into facilities in the area to boost capacity for contract development work for other pharmaceutical companies, according to the newspaper.
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[OCBJ] – Dana Bartholomew