Tag Archive for: Commercial Real Estate

Wheel Maker Rolls Into Brea, Sells Surf City HQ

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BY Mark Mueller

Zadro Products Snaps Up TSW’s Old Headquarters

TSW Alloy Wheels, a manufacturer of high-end custom wheels, has sold its Huntington Beach headquarters as it gears up for a move to a larger location in Brea.

The privately held company recently completed the sale of 14462 Astronautics Drive, a 62,639-square-foot industrial building near the Huntington Beach operations of Boeing Corp.

An affiliate of another Huntington Beach based manufacturer, Zadro Products Inc., paid about $10 million for the building, according to brokers with the Irvine office of JLL who worked on the deal.

“Orange County is experiencing extremely low vacancy, which is driving up rental rates” and for sale prices, said JLL senior vice president Steve Wagner, who represented TSW Alloy Wheels in the sale.

“With strong demand and very little available product, we were able to secure market leading pricing of $160 per square foot,” he said.

The purchasing affiliate, ZZ Partners LP, was represented by Mike Bouma and Paul Caputo of Voit Real Estate Services. Zadro makes fogless and vanity mirrors and other beauty-related products.

The company currently operates out of a 41,500-square-foot facility on Argosy Avenue that’s listed for sale at $6.3 million, according to CoStar Group Inc. records.

TSW will move its operations to one of three new industrial buildings in Brea recently developed by Newport Beach-based Western Realco.

TSW purchased a 155,000-square-foot building at 3172 Nasa St., near the headquarters of Brea-based Suzuki Motor and the La Floresta mixed-use development, for an estimated $21 million.

It’s the largest of the three new buildings at the development, which totals about 365,000 square feet.

Mega Lease

Irvine-based Sares-Regis Group has found a tenant for a big industrial facility it built in the Riverside County city of Perris.

Gardena-based retailer National Stores Inc. recently signed a 10-year lease for the 579,708-square-foot distribution building. The lease is valued at $26 million, the developer said.

National Stores plans to relocate its regional distribution operations from San Diego to the facility at 3900 Indian Ave., according to Larry Lukanish, senior vice president of Sares-Regis’ commercial development division.

National Stores operates 325 shops in 22 states and Puerto Rico as Fallas Paredes, Fallas Discount stores, Fallas Kids stores and Factory 2U. The merchandiser sells brandname and private-label clothing, along with shoes and home decor.

Sares-Regis is building out 12,600 square feet of the facility as office space for National Stores, Lukanish said.

The developer announced in 2013 that it was starting the project, which sits near the former March Air Force Base. The project is located on 28.8 acres next to the 215 Freeway and is near big distribution facilities used by Whirlpool, Hanesbrands Inc., Home Depot, Lowe’s and Ross Dress for Less.

The new building has 109 dock-high doors and secured parking for 138 trailers, among other features.

Sares-Regis said in 2013 that the project would cost about $40 million.

Vegas Buy

Irvine-based apartment investor Bascom Group LLC has bought another rental complex in Las Vegas, this time for a property that caters to seniors.

The company said it paid a little under $10.4 million for Boulder Palms Senior Apartments, a 182-unit complex on the eastern edge of the city. That’s about $57,000 per unit.

Debt financing for the deal was provided by Irvine-based One West Bank, according to Bascom.

It’s “our eighth acquisition in the Las Vegas Valley in the past [20] months,” Bascom Senior Vice President Lee Nguyen said in a statement. “We are excited to continue our expansion here as the market continues to recover.”

The two-story complex, completed in 1997, covers 4 acres and is near a number of area medical facilities, according to the buyers.

Mark Mueller

Harley Davidson Finds Needle in Haystack

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March 24, 2014 | By Carrie Rossenfeld

WESTMINSTER, CA—The motorcycle manufacturer leases 41,939 square feet on a 10-year lease for showroom space at Goldenwest Circle, a location that meets the tenant’s needs for freeway frontage.

Harley Davidson of Westminster/Huntington Beach now has a showroom at 15044, 15051 and 15080 Goldenwest Circle here. The motorcycle manufacturer has signed with owner Realty Associates Fund X LP a 10-year lease valued at $3.7 million for the space, which consists of three buildings totaling 41,939 square feet.

The showroom, which provides excellent frontage on the 405 Freeway, was leased as the result of a complex transaction involving Voit Real Estate Services’ Anaheim-based brokers Mike Bouma, SVP; and Paul Caputo, VP. “Our market knowledge and years of experience were put to the test,” says Caputo.

The three adjacent buildings will allow for expansion of the showroom, service area and additional motorcycle storage while not losing freeway exposure. According to Craig Franz, president of Harley Davidson of Westminster/Huntington Beach, “The Voit brokers were able to find a freeway-frontage facility that met our very specific location and size requirements prior to the facility coming to the open market—a virtual needle in a
haystack.”

The Voit team negotiated a favorable long-term lease, coordinated and assisted with streamlining Harley Davidson’s use permits with the city and backfilled its previous facilities, with no down time. “The myriad of moving parts all came together perfectly and helped us focus solely on our move, as well as the growth of our business,” adds Franz.

Bouma recently spoke with GlobeSt.com about the Orange County industrial market, saying that overall market tightening is already well underway. Bouma noted that the tremendous amount of capital pursuing deals on both an owner/user and investor basis is driving industrial prices up substantially.

“Orange County industrial investors need to be open-minded in today’s market,” Bouma says. “A successful investor in the current market will be prepared to take on lease-up risk, down time and rollover expenses in order to be able to make a deal happen.”

Bouma also noted that tenants, too, must be flexible in today’s tight industrial market. “Industrial tenants should give themselves plenty of time in advance of their lease expiration in order to locate and negotiate on a new facility.” He added that there are simply fewer options in the market compared to three to five years ago.

Alternatively, Orange County industrial owners are now in a strong position, according to Bouma. “We are seeing much shorter lease-up time and fewer tenant concessions in today’s market; an ongoing indication that the market is quickly improving.”