Terreno Plans $41M Office-to-Industrial Project in Orange County
The planned development is already fully pre-leased to ‘temperature-controlled life sciences supply chain solutions provider’
By Nick Trombola September 19, 2023 4:55 pm
reprints
Terreno Realty purchased a low-level office property in Orange County, Calif., earlier this month for $14.8 million, the company announced, with plans to convert the site into industrial space.
The 4.9-acre site at 1720 East Garry Avenue in Santa Ana currently contains three multi-tenant office buildings, all leased on a short-term basis. Terreno plans to demolish the property, which it acquired from Greenlaw Partners, and redevelop it into a 92,000-square-foot, rear-load industrial distribution building.
The redeveloped property is already fully pre-leased to a “provider of temperature-controlled life sciences supply chain solutions,” according to the company. The redevelopment is expected to be completed by the first quarter of 2025, with a total investment of $40.6 million.
The sale and renovation of the property is indicative of the deteriorating office market in Southern California, particularly in Orange County, and also demonstrates the persistent demand for industrial space. Kearney Real Estate similarly plans to build a 164,000-square-foot industrial center in place of the existing Elevate@Harbor office campus in Santa Ana, while Blackstone (BX) sold two Santa Ana high-rise office buildings at a 36 percent loss earlier this year.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
