Sales  ·  Industrial

Buchanan Street Buys Orange County Industrial Campus for $71M

301,000-square-foot complex sold at 73 percent markup from 2016 sale

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Buchanan Street Partners has purchased a 301,000-square-foot industrial complex in Buena Park, Calif. 

Buchanan acquired the five-building complex from Boston-based investment firm TA Realty for $71 million, or approximately $236 per square foot, records show. News of the sale was first reported Wednesday in the Orange County Business Journal. 

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“This is a sizable acquisition in our backyard of Orange County, which is where we want to continue to grow our investment portfolio,” Buchanan Street Senior Vice President Matthew Haugen told the OCBJ.

Located just south of the Santa Ana Freeway at 7050-7150 Village Drive, the complex was 99 percent leased at the time of sale, and sold at a 73 percent markup from its last sale in 2016, according to the publication.

Newport Beach-based Buchanan Street has acquired several other properties in Orange County over the past few years. The company purchased a 92,000-square-foot retail center in Fountain Valley for $24 million in March 2021, as well as a 120,000 square foot office in Laguna Hills for $28.1 million in late 2022.

“South Orange County is a preferred investment market for us given the strong demographics and barriers to entry,” Haugen said of the Laguna Hills purchase at the time. “This acquisition represents a continuation of Buchanan’s strategy of acquiring quality investments in Orange County with the opportunity to add value through new development.” 

Industrial leasing activity in Orange County fell 36 percent in the third quarter of 2023, according to a new market report from JLL (JLL). Total vacancy this most recent quarter rose to 2.4 percent, while sublease availability exceeded 2 million square feet, nearing the high water mark recorded at the end of 2020.

Nick Trombola can be reached at NTrombola@commercialobserver.com.