In a transaction valued at $26 million, a 210,000-square-foot industrial building that combines elements of a corporate headquarters with manufacturing and distribution facilities under one roof within the master-planned Garden Grove Business Center, has been sold in a transaction handled jointly by Colliers International and Voit Commercial Real Estate Services.
Located at 12131 Western Ave., the combined industrial structure was purchased by CT Realty Investors from a family trust. Colliers International Executive Vice President Clyde Stauff of that firm’s Irvine office and Voit Senior Vice Presidents Michael Hartel and Mike Bouma, both of that firm’s Irvine office, handled the transaction.
The currently occupied structure, which combines a 6,000-square-foot production office with 50,000 square feet of open office space on two levels, with the remaining 154,000 square feet of space dedicated to manufacturing and distribution, has excellent identity along Western Avenue near the intersection of Chapman Avenue. It has direct access to major surface transport routes, is rail served, and is directly accessible to the ports or Los Angeles and Long Beach.\
“This building is one of the most high-end structures within the business center and the fact that it combines so many different elements in one building makes it a solid investment decision on the part of CT Realty,” said Colliers’ Stauff. “The combination of the administrative and production facilities with manufacturing and distribution means its occupant can conduct all of its business from one central location, and that was a strong selling point for the investor.”
Although the building is currently occupied, over the long term, the structure’s flexibility and open floor plans also were important features that attracted the investor, noted Stauff. He said that the ability to change the building’s facilities to meet the current or future tenant’s needs were of paramount importance in finding a buyer for the building.
“I don’t think it would be classified as what is currently known as ‘flex’ space, which is a term usually reserved for office-type structures, but it certainly has all the elements to be called ‘transformative flex industrial’ space,” said Stauff. “Certain parts of the building can be transformed – enlarged, reduced, and reconfigured -- to meet many different needs, forms and functions, depending on what the needs of the current tenant may be at the time of its occupancy.”
Stauff also noted other features that clearly differentiate this industrial building from so many other standard, concrete tilt-up structures that make up the bulk of industrial buildings in Southern California, are the architecturally significant entrance, its two levels of brick office space that are elevator-served with an abundance of windows that allow for natural lighting, its state-of-the-art distribution facilities, and its flexible parking element that can be reduced or enlarged to accommodate the needs of its tenant.
Additionally, according to Stauff, the building features a fully secured drive-around and fenced truck yard, 21 dock-high loading doors with pit-type levelers and clearances from 26 to 32 feet , an expandable employee and visitor parking area with 282 current spaces, cross-dock loading, high efficiency lighting, and heavy industrial electrical power sources.
“Demand for this type of building in Orange County is at an all-time high,” said Stauff. “There are very few industrial buildings of this size this close in to the population centers it serves that when they do come on the market, there are usually no lack of interested investors.”