(Read more on the industrial market.)

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ANAHEIM, CA-Sares-Regis Group of Irvine has sold a 281,548-sfwarehouse and distribution building here for $38 million, a pricethat the development and investment firm says is one of the highestever paid per sf in this market for a comparable building. "This isone of the highest comps on a price-per-square-foot basis for abuilding this size in Orange County," explains Larry Lukanish, avice president in the commercial investment division ofSares-Regis.

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The building is a class-A distribution warehouse on 11.8 acresat 4633 E. La Palma Ave., with features that include a 140-foottruck court, 30 dock-high doors, 30-foot clear height and excesspaved area for trailer storage. Sares-Regis bought the building inJune of 2006 for $100 per sf, which was a 6.6% cap rate. Theselling price was $136 per sf at a 5.1% cap rate, Lukanishsays.

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Both Sares-Regis and the buyer were represented by Brad Bierbaumof the Anaheim office of CB Richard Ellis. The buyer, also thebuilding's tenant, operates a home furnishings import business.

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The premium price that the building commanded reflects thecontinued strength of the county's industrial market, in whichongoing demand for space and a dearth of land for new developmentkeep driving up lease rates and sales prices. As of the thirdquarter, the latest period for which figures are available, OrangeCounty had only 1.1 million sf of new industrial space underconstruction on a base of 222 million sf, 25% less space than wasunder way a year before.

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