Orange County Industrial Park Receives $21M Refi
- Jan 28, 2021
CBRE has secured a $21 million refinancing package for Tri-Freeway Business Park, a 208,600-square-foot industrial complex in Anaheim, Calif. Bank of the Sierra provided the seven-year note, according to Orange County records. The borrower is a private investor based in California.
The new mortgage replaces the existing debt on the asset: a $19.1 million acquisition loan originated by Rabobank in November 2016, CommercialEdge data shows. The owner paid Greenlaw Partners $29.5 million to acquire the property, according to public records. CBRE assisted the seller and secured the financing package at the time.
Located on 13 acres at 2101-2121 W. Crescent Ave. and 700-720 N. Valley St., the park encompasses 10 single-story buildings completed in 1974. At the time of closing, the asset was 96 percent occupied by more than 100 tenants. The warehouses have 78 grade-level doors, clear heights between 14 and 16 feet and a parking ratio of 2 spaces per 1,000 square feet. Tri-Freeway Business Park is a short distance from Interstate 5 and Freeway 91, in a central location of North Orange County.
The CBRE team that negotiated on behalf of the borrower included Senior Vice Presidents Shaun Moothart, Dana Summers, Bob Ybarra, Doug Birrell and Vice Chairman Bruce Francis. Last August, the brokers were part of the team that arranged a $26.8 million loan for two office assets totaling 70,740 square feet in Los Angeles.
Orange County picks up steam
Orange County’s industrial sector ended 2020 with an overall 1.9 percent vacancy rate, average rent prices at $1.07 per square for and positive net absorption of 124,145 square feet, according to a recent CBRE report.
Compared to the overall metro, the North Orange County submarket had an even better fourth quarter in 2020: the sector saw a positive net absorption of 302,115 square feet and had an overall vacancy rate of 1.1 percent. Continued demand for well-placed industrial assets resulted in increased rent prices, which reached $1.05 per square foot in the submarket, an 8.2 percent uptick over the previous quarter.
Moreover, North Orange County had some of the largest leases close towards the year’s end: American Woodwork Corp. and Saddle Creek Logistics renewed their commitments, both north of 600,000 square feet, and Brentwood Home signed a new lease for 229,500 square feet, the same report shows.