Bank of the Sierra Refinances 208K SF SoCal Industrial Property for $21M

The property is nearly fully occupied with 208,583 square feet in Anaheim

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Bank of the Sierra is tapping into Southern California’s booming industrial market, providing $21 million to refinance a 208,583-square-foot facility in Orange County’s Anaheim.

The 10-building property, called Tri-Freeway Business Park, is nearly fully occupied at 2101-2121 West Crescent Avenue and 700-720 North Valley Street. It’s owned by Tri Freeway Business LLC, a private investment firm and asset management company tied to Peter Wang, based in Mountain View, Calif., property records show. 

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The Allen Matkins/UCLA Anderson 2021 winter forecast, which polled real estate professionals in California in development and investment markets, showed how industrial space remains in the growth portion of their business cycles due to rampant online shopping. Vacancy rates have remained extremely low across all regions surveyed and sentiment about the coming three years has come roaring back to levels of optimism unseen for many years. 

“The industrial market continues to be the hottest segment of the CRE world,” Barbara Perrier, vice chairman at CBRE, said in a statement. “2020 was a record year with 224 million square feet of industrial product absorbed in the U.S.”

Despite the economic downturn, the industrial sector has remained on solid ground with record-high asking rents and positive net absorption. And, while the Los Angeles and Inland Empire markets dwarf Orange County’s industrial inventory, due to a largely built-out market and a shortage of available land, the market attracted $626 million in capital in the fourth quarter of 2020 and its vacancy rate tightened to 1.9 percent vacancy rate, according to CBRE. The average price per square foot for executed transactions in Orange County rebounded beyond pre-COVID pricing, to $226. It marked a 4.2 percent increase year over year.

In the fourth quarter, e-commerce titan Amazon acquired the Orange County Register’s former printing location, and plans to demolish it and build a 112,485-square-foot, last-mile distribution warehouse in Santa Ana, just south of Anaheim.

CBRE’s Shaun Moothart, Bruce Francis, Dana Summers, Bob Ybarra and Doug Birrell arranged the seven-year loan on behalf of Tri Freeway Business.

“It doesn’t matter whether it is single-tenant or multi-tenant, vacant or leased, small incubator suites or big-box distribution, the industrial debt market is firing on all cylinders and financing is as competitive as we have ever seen across all sources of capital,” Moothart said.