LOS ANGELES—OMP has purchased a 7.5-acre entitled land site in the San Fernando Valley from United Technology Corp. The purchase marks the developer’s second land acquisition since June. It plans to build four industrial condominiums and retail space on the site with construction starting by September 1 of this year.
“The San Fernando Valley is a real land constrained environment with very few parcels available,” Timur Tecimer, CEO of OMP, tells GlobeSt.com. “For us to have an opportunity to find 7.5 acres, which is a relatively small site for us but a larger site in this submarket, is really exciting.”
The site is entitled for both industrial and retail space. OMP will build 17,000 square feet of retail space on the site, and has already signed leases with Farmer Brothers and El Pollo Loco to anchor the retail portion of the space. “This is the first time is over 15 years that we have done any retail,” Tecimer says. “By rezoning the corner for retail, we think we have created more value. Going forward, we will definitely look for more combination properties with industrial, commercial and retail.”
The industrial space, of course, is the bread and butter of the site. OMP will build four units totaling 112,500 square feet. This is not OMP’s first industrial project in the submarket. In 2005, the developer built the Northridge Business Center, an industrial complex with 16 for-sale units. “Demand for that project was really high, and we sold the units within 12 months of completion,” Tecimer explains, adding that the company also learned a few lessons during that project. “Users wanted fenced yards, dock-high loading and low mezzanine.” For that reason, each unit in this development will have a fenced yard, dock-high loading and 120-foot truck boards with 10% mezzanine. Unit sizes will range between 25,000 to 30,000 square feet. OMP estimates the project will be complete by the end of Q1 2015.
OMP currently has 1 million square feet under construction. In June, the developer purchased 18 acres in Pomona with plans to build a 240,000-square-foot build-to-suit facility for Graybar Electric Co. “We have traditionally been an infill developer. If you look at our history, which dates back to 1972, I would say that 75% of our development has been in the infill markets of L.A. and Orange County,” says Tecimer. “When you are an infill market or a land constrained site, we feel that you have much more protection if the market does ever turn, just because there are so few opportunities and there is limited competition. We have tried to find complicated sites with entitlement or environmental issues, and focus on those properties that others might pass on.” Those projects could either be up for lease or sale, depending on the financing structure and the project’s partner.