ANAHEIM, CA-A series of industrial sales here and in two otherOrange County cities illustrate the strategies that developers andinvestors are employing in the current market, according toannouncements from the firms. Developer Sares-Regis of Irvineaffirmed its targeting of owner-users with the sale of twobuildings in a 120,000-square-foot industrial project that itdeveloped in Anaheim, while Los Angeles-based Rexford Industrialexecuted a short sale as it pursues its goal of acquiringdistressed assets in high-barrier-to-entry infill markets inSouthern California.

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The Sares-Regis project is Canyon Point, a development of threeLEED-certified buildings of 57,593 square feet, 32,554 square feetand 31,744 square feet on 6.3 acres at the southeast corner atMiraloma Avenue and Miller Street in the Anaheim Canyon technologydistrict. The Irvine-based developer has sold the first two and ismarketing the 31,744-square-foot building.

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Both buyers were offshore companies. HSJQ, a Chinese cabinet andtile distributor, purchased the 57,593-square-foot facility for$7.4 million in a deal that was reportedpreviously on GlobeSt.com. Woongjin Chemical America,a South Korean maker of water purification equipment for industrialuse, purchased a 32,554-square-foot building for $4.5 million.

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Larry Lukanish, vice president in Sares-Regis Group’s CommercialInvestment Division, points out that the two buildings that soldwere under contract months before completion. The speedy sales“affirm our view that there is a segment of users who want thepremium features we offered,” Lukanish said. He notes that WoongjinChemical America, which will conduct manufacturing operations inthe facility, was in the market for a LEED building to satisfy itscorporate sustainability mandate.

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Brokers Dennis Keane and Adam Dzierzynski in the City ofIndustry office of Lee & Associates represented HSJQ USA.Colliers International’s James Min and Stephen Schloemerrepresented Woongjin Chemical America. Sares-Regis was representedby Brad Bierbaum and Ian Britton in the Anaheim office of CBRichard Ellis.

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In the Rexford acquisition, the company paid $7.8 million forGrand Commerce Center, a 101,187-square-foot, multi-tenantindustrial complex at 600 S. Grand Ave. in Santa Ana. Rexfordbought the 80% leased property from Shook Properties through alender-mandated short sale, with Frank Kosi of Sperry Van Nessrepresenting both the buyer and seller.

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The transaction marks the first acquisition for the newly formedRexford Industrial Fund V REIT, Rexford Industrial’s fifth SouthernCalifornia-focused industrial property investment vehicle. HowardSchwimmer, co-founder and managing partner of Rexford, describesthe acquisition as “consistent with our goal to work withdistressed sellers to acquire industrial property in high-barrierSouthern California infill industrial markets where we can addvalue.”

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The Grand Commerce Center is a six-building property thatfeatures 850 linear feet of prominent exposure fronting GrandAvenue, a prime commercial corridor in Santa Ana with immediateaccess to Interstate 5. The project represents a substantialopportunity for Rexford to add value by professionally managing,maintaining and marketing the project, the company says. It pointsout that the Santa Ana submarket of Orange County demonstratestight industrial market occupancy of approximately 96%. Rexfordestimates that it acquired the property at approximately 50% belowreplacement cost.

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Michael Frankel, Rexford’s managing partner, points out thatRexford is pursuing a substantial pipeline of stressed anddistressed acquisition opportunities, targeting the acquisition ofover $500 million of stabilized and value-add infill industrialproperty throughout Southern California.

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In another recently closed Orange County deal, the VA (ValueAdd) Property Group, part of Lee & Associates, completed the$3.8 million sale of a 32,805-square-foot industrial building at3183 Red Hill Ave. in Costa Mesa. Buyer Bellalance LLC wasrepresented by senior vice presidents Brian Garbutt and Phil Cohenof Lee-Associates Irvine Inc. Seller JR Family Properties wasrepresented by Mike Hefner and Sam Olmstead of Voit Real EstateServices.

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