4663 La Palma Ave.

ANAHEIM, CA-Sares-Regis Group has sold a 281,548-square-foot distribution building at 4663 La Palma Ave. to Pfizer Inc. for $42 million after buying the note on the property and foreclosing. Irvine-based SRG owned the property in a joint venture with an institutional partner and recently leased it to the Straub Distribution Co. for 15 years.

SVP Larry Lukanish of Sares-Regis Group’s commercial investment division explains the history of the deal: “We bought the note and foreclosed on the vacant building last summer. Within four months, we leased the entire building to a premier tenant on a long-term lease. Then we put the building on the market and found a Fortune 100 company to buy the building—all within a year of acquisition.”

Straub Distribution Co. is the exclusive distributor of Anheuser Busch products in Orange County. Straub is consolidating from three locations in Orange County to make this facility its new corporate headquarters and distribution warehouse. It is in the process of converting the warehouse to maintain a temperature of 60 degrees for beverage storage and building tenant improvements for its office space.

The CB Richard Ellis team of Darla Longo, Barbara Emmons and Rebecca Perlmutter, along with local market experts Brad Bierbaum and Ryan Peterson, represented Sares-Regis Group. Chris Kehrli and Ben Seybold, also with CBRE, represented Pfizer.

Longo commented on the sale: “There is a very limited supply of large, Class A buildings in the North Orange County market, and the large buildings that do exist are typically older construction with limited functionality for today’s tenants. As a result of both the limited supply and capital’s strong appetite for stable, leased assets today, this was a highly competitive offering.”