$19M Buy Pushes Bixby Industrial Past $300M

The acquisition, which was the 12th purchase in Bixby's core industrial portfolio over the past 18 months, add an "institutional quality investment fits our core strategy," comments Mike Severson, vice president of acquisitions and development for Bixby Land. Developed by Investment Building Group of Newport Beach in 2005, the class A distribution facility is located within the Irvine Business Complex and situated on approximately six acres of land. The property is 100% occupied on long-term triple-net leases to Paragon Luggage Inc. and Sterling Motors Collision Center. Paragon Luggage, which leases 56,100 sf, is one of the largest independent global manufacturers of luggage and travel products. Sterling Collision Center, the only BMW factory certified collision repair center in Central Orange County, leases 58,400 sf.

Severson comments that the current supply-constrained market in Tustin, a highly developed infill market, "will promote high demand for future leasing." He says the property also benefits from its location near Orange County freeways, the John Wayne Airport, restaurants, banks, hotels, shopping centers and employee and executive housing.

Features of the facility include an excellent use of skylights allowing tenants to significantly reduce lighting costs, a clearance height of 30 feet, 14 dock high doors, three ground level doors and high-image lobbies. "The industrial market in Orange County continues to perform well," with tight vacancy levels and steady activity," Severson observes. He says that Bixby "will remain an active investor in strong markets such as Orange County for our core portfolio."

According to a GlobeSt.com report at the time Paragon signed its lease for the building, the six-acre site was part of a large Steelcase facility before it was redeveloped for its current use. The building serves as Paragon's headquarters, showroom and a distribution center.