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CYPRESS, CA-BKM Development of Costa Mesa has acquired the 540,000-sf former West Coast headquarters for Panasonic Corp. of North America for $42 million and plans to upgrade the property. The deal includes two industrial distribution buildings on a 22-acre campus of high-image distribution/office facilities.Brian Malliet, managing partner of BKM Development, says his company was attracted to the property for its location within an area that is popular as a corporate headquarters for Fortune 500 companies in Orange County. “There are few alternatives for companies interested in buying or leasing more than 100,000 sf in this area,” Malliet says. Malliet’s firm is working with CB Richard Ellis on the marketing of the buildings and received construction financing from the Los Angeles Real Estate Group of Wells Fargo.The two buildings that BKM bought include one on Katella Avenue and the other on Holder Street. Panasonic will remain in the Katella location on a short-term leaseback agreement with a long-term option. The Holder building will be subdivided and sold or leased separately. Although the buildings are in what Malliet describes as “excellent condition,” BKM plans an estimated $5 million in upgrades, including a subdivision. Stephen Batcheller of CB Richard Ellis, part of BKM’s marketing team for the project, says the marketing effort will aim to capitalize on the low industrial vacancy rates and the significant lack of available land for new construction, which in turn has boosted demand for space like that in the two Cypress buildings.Malliet, a former Voit Development Co. executive, founded BKM in 2002. The company specializes in construction, development, acquisition, property repositioning, and asset management services in joint ventures with private investors.

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