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Press Release, May 04, 2018

ARA Aquires Newly-Constructed 143,000 SF Industrial Asset in North Orange County

ANAHEIM, Calif., (May 4, 2018) – American Realty Advisors (“ARA”), an institutional fund manager with more than $8.2 billion in assets under management, has acquired a 143,930 square-foot, newly-constructed industrial asset in North Orange County, California. The building is currently 100-percent occupied by one of the largest private, employee-owned electrical contractors in the U.S.

            “We are strategically targeting core properties that have long-term leases in-place with extremely high-quality tenants and fixed annual rental increases,” says Scott Anderson, Director, Investment Group at ARA. “This asset checks all of the boxes. It is leased to an electrical contracting company through 2028 with built-in annual escalations, is located in an exceptionally strong and supply-constrained market, and features quality new construction with top-of-the-line amenities.”

            “This is a true state-of-the-art facility,” says Mr. Anderson. “The building features floor-to-ceiling glass windows, modernized creative office space, a hybrid solar roof system complete with skylights and solar panels, 32’ clear heights, ESFR sprinklers, and a 2.05/1,000 parking ratio, among many other features.”

            In addition to its quality design, the property will benefit from its in-fill location in North Orange County and frontage along the I-5 freeway, providing visibility and immediate access to one of Orange County’s busiest thoroughfares.

            “North Orange County closed out the end of 2017 with an industrial vacancy of one-percent with very little new industrial development in the pipeline,” says David Hubbs, Executive Vice President, Portfolio Management at ARA. “These extremely high barriers to entry are a result of limited land availability, rising land costs and entitlement barriers, which strategically position the asset for long-term stability and growth, and will allow us to deliver strong risk-adjusted returns to investors over time.”

Mr. Hubbs adds, “This is especially true as the rising e-commerce market continues to drive demand for ‘last mile’ delivery hubs in centrally-located urban core markets.”        

The property is located at 1730 South Anaheim Way in Anaheim, California, providing freeway visibility and quick and convenient access to the I-5, SR-55, SR-57, SR-22 and SR-91 freeways.

ARA acquired the property from a joint venture between Batcheller Equities, a commercial real estate investment and development firm based in Newport Beach and Panattoni Development Company, a national industrial development firm with 24 offices throughout the U.S. and headquartered in Newport Beach. ARA represented itself as the buyer and Bret Hardy and Jeff Read at NKF Capital Markets represented the seller in this transaction.

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