Panattoni Development is growing its industrial girth in Tustin.
An affiliate of the Irvine-based developer has filed plans to build a 143,400-square-foot warehouse at 14321 and 14351 Myford Road, next to another building it built that is now leased to electric vehicle manufacturer Rivian, the Orange County Business Journal reported.
The new industrial building would replace a 57,300-square-foot building and an 82,000-square-foot building on two lots that combine for 7.2 acres. Both were built in the 1970s.
A Panattoni affiliate bought the smaller building at 14321 Myford Road last August for $21.3 million. It bought the larger building at 14351 Myford Road in March 2022 for $19.3 million.
Plans for their replacement call for a 143,400-square-foot warehouse, 5,000 square feet of mezzanine offices, 19 truck docks and 103 parking spots.
The proposed development is next to a 220,000-square-foot industrial building that Panattoni built at 14451 Myford Road.
Before it was completed in November, Panattoni and Link Logistics Real Estate, a unit of New York-based Blackstone, sold it for $142 million, or $646 per square foot. The buyer was Principal Global Investors, based in Des Moines, Iowa.
Panattoni bought the property in 2020 for $32.4 million, then razed its buildings to build the new one.
Rivian leased the property last June, its largest lease in Orange County. It now pays close to $6 million a year in rent, according to CoStar estimates, or $2.27 per square foot per month.
It’s the third building in the area for Rivian. Its headquarters lies a few doors away on the Irvine side of Myford Road, and it leases an industrial building a few blocks away in Tustin for its electric battery division.
Panattoni Development, founded in 1986 by now chairman Carl Panattoni, has 46 offices worldwide and a portfolio of 578 million square feet, according to its website.
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— Dana Bartholomew