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COSTA MESA, CA-Grubb & Ellis Realty Investors LLC has acquired a 109,000-square-foot industrial/flex building at 1650 Sunflower Ave. from Sacramento-based Panattoni Development Co. in a tenant-in-common transaction. According to Jeff Hanson, president and chief investment officer of Grubb & Ellis Realty Investors, the deal also includes a vehicle maintenance building totaling more than 3,000 square feet.

The property, which was built in 1976 and renovated this year, is a sorting and distribution center for Federal Express Corp., which is the sole occupant of the building and occupies it under a long-term triple-net lease. The facility is situated on nearly seven acres and is close to both the John Wayne Airport and Interstate 405, the Santa Ana Freeway.

Hanson comments that the 1650 Sunflower building, which expands Grubb & Ellis Realty Investors’ portfolio of assets under management, enables Federal Express to receive and ship freight from both John Wayne Airport and Los Angeles International Airport and to deliver to its local customer base. The recent renovations at the property added new office space to the main structure, as well as the vehicle maintenance building—improvements that increase the value to the property overall and keeping it “attuned to the tenant’s needs,” according to Hanson.

Hanson adds that the facility suits Federal Express for a number of reasons in addition to its access to both the Orange County and LA airports. The building features loading capabilities on three sides as well as clear height and column spacing for sorting and distribution equipment, and a large yard for vehicle storage, Hanson explains.

Financing for the 1650 Sunflower acquisition was arranged by Gabe Potyondy and James Ko at Allied Irish Banks PLC. The purchase price was not disclosed; the property previously sold for $15 million in July 2007. Grubb & Ellis Realty Investors is the real estate investment and asset management subsidiary of Santa Ana, CA-based Grubb & Ellis Co.

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