Newport Beach, Calif. - Bixby Land Company continues to grow its industrial portfolio with the $18.2 million, all-cash purchase of a 121,341-square-foot industrial building at 1400 Allec Street in Anaheim, Calif. The acquisition follows a deliberate increase in core industrial investments by Bixby, who seeks leased, institutional grade industrial projects in the $5 million to $50 million range in primary West Coast markets, Arizona and Nevada.
“We remain committed to an investment strategy that identifies high quality warehouse distribution product,” said Mike Severson, senior vice president of investments at Bixby Land Company. “Bixby has acquired over $100 million of industrial product over the last 24 months, and we have a strong appetite for this type of product going forward.”
Bixby’s latest purchase is 100% occupied on a long-term lease to Blue Line Foodservice, a privately-held international supply chain solutions provider. The tenant utilizes the Allec Street distribution facility to serve area Little Caesars restaurants.
The infill Orange County location of the project was of particular interest to Bixby. Located on a 5.3-acre site in Anaheim’s Platinum Triangle, the building is within one mile of a major I-5 (Santa Ana) Freeway interchange.
Demand for industrial space in the area is high; CBRE reports a 1.6% industrial vacancy in Anaheim as of the second quarter of 2016. The broader North Orange County market is 2.1% vacant, and with just 219,000 square feet in development.
“From our perspective, the supply and demand fundamentals for industrial space in Orange County have never been better,” added Severson.
Jeff Chiate, Jeff Cole, and Rick Ellison at Cushman Wakefield represented the seller, Alere Property Group, in the transaction; Bixby was self-represented.