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ANAHEIM, CA-Sares-Regis Group of Irvine has sold a 281,548-sf warehouse and distribution building here for $38 million, a price that the development and investment firm says is one of the highest ever paid per sf in this market for a comparable building. “This is one of the highest comps on a price-per-square-foot basis for a building this size in Orange County,” explains Larry Lukanish, a vice president in the commercial investment division of Sares-Regis.

The building is a class-A distribution warehouse on 11.8 acres at 4633 E. La Palma Ave., with features that include a 140-foot truck court, 30 dock-high doors, 30-foot clear height and excess paved area for trailer storage. Sares-Regis bought the building in June of 2006 for $100 per sf, which was a 6.6% cap rate. The selling price was $136 per sf at a 5.1% cap rate, Lukanish says.

Both Sares-Regis and the buyer were represented by Brad Bierbaum of the Anaheim office of CB Richard Ellis. The buyer, also the building’s tenant, operates a home furnishings import business.

The premium price that the building commanded reflects the continued strength of the county’s industrial market, in which ongoing demand for space and a dearth of land for new development keep driving up lease rates and sales prices. As of the third quarter, the latest period for which figures are available, Orange County had only 1.1 million sf of new industrial space under construction on a base of 222 million sf, 25% less space than was under way a year before.

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