The two new ventures are HW-Tustin LLC, a joint venture between Los Angeles-based Hanover Real Estate Fund LLC, and Newport Beach-based Werdin Corp.; and HLA-Wald LLC, a joint venture between the Hanover real estate fund and Newport Beach-based Low & Archibald Real Estate Group.

In the project with Werdin, the Hanover joint venture has acquired a 3.6-acre industrial parcel that will be developed as a small industrial buildings-for-sale project. Located just southeast of Redhill Avenue and Edinger Avenue on Industrial Drive, the site will be developed into an approximate 57,000-sf industrial park known as Pacific Business Center. A total of 11 buildings, ranging in size from 4,300 to 6,500 sf, will be available on a for-sale basis. The buildings will feature 24-ft clear heights, 50% office build-out, mezzanine office space, ground level truck doors and full fire and life safety systems.

Michael Sanchez, a Hanover director who coordinated the investment, says the company's decision to participate in the development was based in part on the tremendous demand for smaller buildings and the relatively limited new supply similar to this project coming on-line.

Pacific Business Center will be marketed for sale by Scott Read, Bryon Ward and Oliver Fleener of Grubb & Ellis in Newport Beach. It has been designed by Irvine-based Ware Malcomb Architects, which is also the designer for Hanover's other local venture, and will be constructed by Newport Beach-based contractor HBI Inc, with construction financing by Bank of America.

In the venture with Low & Archibald, the partners will develop a 3.6-acre parcel in Spectrum 5 as small industrial buildings for sale. Located at the southwest corner of Wald Road and Scientific Way, the site will be developed into an approximate 58,000-sf park known as Wald Business Center. The center will comprise 14 buildings ranging in size from 2,000 to 8,500 sf, providing the same clear heights and other features as the other Tustin project. Sanchez says that, despite competing inventory coming on-line, demand outpaces supply, even in the Irvine Spectrum. Every project currently in the Spectrum has either sold out before completion or shortly thereafter, he says, and pre-sale activity indicates that Wald Business Center may do the same.

Wald Business Center will be marketed for sale by Michael Hartell and Kevin Turner of Colliers Seeley in Irvine.