Tishman Speyer Buys Industrial Project Site in SoCal for $146M
Shovel-ready project will span 600,000 square feet across four buildings in Orange County
By Nick Trombola and Greg Cornfield January 16, 2024 3:20 pm
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Tishman Speyer and Mitsui Fudosan America (MFA) are betting on the continued demand for industrial space throughout Southern California. The joint venture on Tuesday announced the acquisition of a 32-acre, fully entitled development site in Irvine, Calif.
Representatives did not disclose the name of the seller or the value of the deal, but records show FivePoint Holdings sold the property for $145.9 million. Tishman Speyer intends to begin construction during the fourth quarter this year on four industrial buildings totaling about 600,000 square feet.
The buildings will range in size between 73,000 and 203,000 square feet for distribution facilities, warehouses, manufacturing sites and other flex uses. The developer said the asset is in the Great Park Neighborhoods at the confluence of Interstates 405 and 5, near John Wayne Airport. The vast majority of the inventory in the South Orange County industrial market is between 30 and 40 years old.
Orange County’s industrial market maintained strong demand through 2023, according to CBRE’s fourth-quarter report. Total leasing activity amounted to 2.8 million square feet in the final quarter, which was an increase of almost 1 million square feet compared to the third quarter.
The sale is the second acquisition via the Tishman Speyer-Mitsui Fudosan America Logistics Venture, which was seeded by a $500 million commitment from MFA, and co-investment capital from Tishman Speyer. The JV launched in 2022 to acquire ground-up development projects.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
