SANTA ANA, CA-Buchanan Street Partners of Newport Beach has invested $25.4 million in Newport Beach-based developer Master Development's 230,000-sf, 11-building Las Palmas business park. The redevelopment of the industrial park will create 50 units from 2,500 sf to 15,640 sf.

The owners acquired the project site for $30.5 million. The buildings were constructed in phases that began in 1969 and are situated on 14.5 acres, close to major freeways and John Wayne Airport.

The investment appealed to Buchanan for a number of reasons, according to Tim Ballard, the company's chief investment officer. He notes that along with the general demand for industrial space amid low vacancy rates, growing international trade and an expanding regional economy continue to push vacancy lower and rates higher. Recent market reports have cited record high rates and low vacancy in the county.

Buchanan Street Partners provided this joint venture equity so that Master Development Corp. could renovate and re-brand the property. The units will be parceled as condominiums and sold individually in what is Buchanan's sixth equity investment with Master Development.

The venture is one of several avenues that Master Development is pursuing throughout Southern California. In a recent interview with GlobeSt.com, EVP Bryan Bentrott of Master Development told GlobeSt.com that the company is looking for value-added opportunities throughout the Southland.

In addition to its financing relationship with Buchanan, Master Development recently formed a joint venture with GE that gives Master Development broad discretion in investing $50 million of equity from GE in industrial projects that Master Development will choose and execute. MDC will be looking for "any kind of value-added opportunity" and is confident that it can spot the value because of its background in developing value-added projects and its experience as a contractor, Bentrott told GlobeSt.com.