Yorba Linda Industrial Campus Sells for $81 Million

An Orange County industrial park has traded hands for more than $80 million as Greater Los Angeles’ industrial market fights to achieve post-pandemic stability.

A joint venture between Harbor Associates and Farallon Capital Management acquired the Yorba Linda Commerce Center at 3910 Prospect Avenue in Yorba Linda for $81 million, L.A. Business First reported. The seller was an unnamed family that had owned the property for more than three decades.

The multi-tenant industrial campus spans 280,000 square feet across 10 buildings on a 16.5-acre site. The 1987-built complex boasts 83 industrial units ranging from 1,200 to 24,000 square feet in size. At the time of closing, Yorba Linda Commerce Center was 98 percent leased.

Despite being geared toward industrial tenants, other users take up space at the site. The North Orange County Conservatory of Music runs its school from the Yorba Linda Commerce Center, while the Baseball Softball World sports school and Reptile Island pet store have also set up shop there.

Harbor Associates has been eyeing the industrial campus for years, Harbor principal Justin Loiacono told L.A. Business First. With a variety of suite sizes, the property is “designed to meet current operational needs and still accommodate future growth,” Rich McEvoy, another principal at the Seal Beach-based commercial real estate investment firm, said of the site. The company secured a $56.3 million acquisition loan from an affiliate of QuadReal Property Group as part of the process.

Small-bay industrial remains the strongest segment in Orange County’s industrial market, according to CBRE data cited by L.A. Business First. The vacancy rate for spaces under 24,000 square feet is roughly 2 percent, while smaller spaces under 10,000 square feet are roughly 1 percent vacant. Orange County’s overall industrial market registered a 5.7 percent vacancy rate in the first quarter, according to CBRE’s Q1 report. — Chris Malone Méndez