Buchanan Street Partners has purchased a 301,300-square-foot industrial campus in Buena Park for $71 million.
The Newport Beach-based investor bought the five-building campus at 7050-7150 Village Drive, the Orange County Business Journal reported. The seller was TA Realty, based in Boston.
The price works out to $236 per square foot, netting a 74 percent profit for the seller.
TA Realty bought the 32-year-old industrial campus in 2016 for $41.1 million, or $136 per square foot.
“This is a sizable acquisition in our backyard of Orange County, which is where we want to continue to grow our investment portfolio,” Buchanan Street Partners Senior Vice President Matthew Haugen told the Business Journal.
The complex, located just south of the 5 Freeway near Knott Avenue, was 99 percent leased at the time of sale.
It includes such tenants as MashStudios, a furniture company, Camel Grinding Wheels and Japan-based fire alarm maker Hochiki, a tenant for more than 15 years, with “rents well below market,” Haugen said. He noted they’re 35 percent below average for the area.
“We will gradually increase rents as leases expire,” Haugen told the newspaper.
Buchanan also has the option to sell each building individually, as they are all on separate parcels.
Industrial vacancy in OC was 2.4 percent in the third quarter, although space available for sublease rose to about 2 million square feet, according to Bisnow.
Late last year, Buchanan Street Partners bought a 120,400-square-foot office building in Laguna Hills for $28.1 million, or $234 per square foot. The firm is working to convert the property into medical offices, Haugen told the Business Journal.
Buchanan also owns The Jetty, a 37,000-square-foot office complex next to Newport Beach Golf Course. Its last OC purchase was in March 2021, when it paid $24 million for the E405 Euclid Shops, a 92,000-square-foot shopping center in Fountain Valley, just north of the 405 Freeway.
More recent purchases were out of state. In November, Buchanan helped Costa Mesa-based Arnel & Affiliates buy a 354-unit apartment complex in McKinney, Texas. The acquisition required a $56 million loan.
The deal was Buchanan’s fifth multifamily property in Texas, which now includes 1,600 apartments in Grand Prairie, Rowlett, Dallas and Fort Worth. The investor also owns commercial properties, both office and industrial.
— Dana Bartholomew
Read more
Commercial
Los Angeles
Buchanan Street pays $28M for Laguan Niguel office building
Los Angeles
Cadence scores $12.9M loan for Gelson’s on Sunset Boulevard
Residential
Texas
Buchanan Street Partners buys 354-unit resi in McKinney