We bought two buildings totaling over 540,000 square feet on 22.4 acres in Cypress, California. Located at 6550 Katella Avenue and 11130 Holdner Street, the property was formerly occupied by Panasonic as its West Coast headquarters/distribution center. The asset consist of two high-image and high-cube warehouse buildings with excess land/landscaping around the office portion of the building. The opportunity was to subdivide the parcel, reconfigure the parking lot, and add additional parking to allow for a higher and better use.
There existed a growing need for office/corporate headquarters space in the submarket. Site improvements were put into immediate progress and office improvements were completed, including a new entry to further reduce the sizing of the space to attract higher-end tenants. Prior to completion of its repositioning effort, we executed a lease to Vans (a division of Vanity Fair) as a new tenant for 62 percent of the property on a 10-year lease for creative office space. Soon after the execution of the Vans lease, we received an unsolicited offer from the REIT Colony Realty Partners for $60 million, which resulted in a net profit of over $6 million.
- High-image distribution campus in highly desired area of North Orange County
- Functional distribution center formally occupied by Panasonic
- Sold to a REIT for market-setting price, increasing the market value of similar available product type
- Transaction of this magnitude initiates more transactions in the same marketplace
- Captured a national known company with strong credit