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GARDEN GROVE, CA-Burke Real Estate Group of Costa Mesa has lined up $9.86 million in financing through Wrightwood Capital for the acquisition and construction of Monarch Corporate Center. The four-building project of more than 64,000 sf will target both the multi-tenant and single-tenant markets.

According to Jason Choulochas, western regional director for Wrightwood, the plan is for Burke to divide the property, which is at Monarch Street and Patterson Drive, into four parcels. One parcel will be dedicated to a multi-tenant industrial building that will be marketed for lease and the other three will be free-standing buildings suitable for single users.

The development site is near the heavily traveled Knott Avenue corridor, a location with access to both Orange and Los Angeles counties. The industrial area is also close to a skilled labor force, Choulochas notes.

The Wrightwood regional director describes the project as “very attractive due to the planned high quality industrial buildings, combined with a market showing low vacancy rates and high demand from small businesses.” The surrounding market has “virtually no new product available for small business owners,” Choulochas adds.

The Burke project will aim at both the leasing and user sales markets in Orange County, both of which have performed well in 2006, according to recent market reports. A Grubb & Ellis report, for example, says that the majority of the third quarter’s industrial leasing activity was concentrated in buildings ranging from 10,000 sf to 30,000 sf.

At the same time, user deals accounted for more than 41% of all industrial sales in the county during the third quarter. During the quarter, a total of 800,000 sf of industrial product was sold.

The Monarch Corporate Center transaction represents the seventh project between Burke Real Estate Group and Wrightwood Capital, which also provided financing this summer when Burke acquired the 37,842-sf Orangewood Office Building in Garden Grove. In that deal, a $7.9-million loan arranged by Wrightwood covered the acquisition costs and conversion of a two-story steel frame building at 7077 Orangewood Ave. to office condominiums.

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