Done Deals: Grubb & Ellis Realty Investors Acquires 1650 Sunflower in Orange County, CA

Sunday, November 9, 2008

Grubb & Ellis Realty Investors Acquires 1650 Sunflower in Orange County, CA

SANTA ANA, CA/PRNewswire/ -- Grubb & Ellis Realty Investors, LLC thas acquired 1650 Sunflower, (middle left site map) an industrial/flex building in Costa Mesa on behalf of tenant-in-common investors.

The asset includes an approximately 109,000-square-foot sorting and distribution center and a vehicle maintenance building totaling more than 3,000 square feet.

Situated on nearly seven acres, the property is in close proximity to John Wayne Airport and Interstate 405.

Built in 1976 and renovated in 2008, the building's recent improvements include: a renovated lobby, a new roof application, 15 new truck doors and more.

"1650 Sunflower is a high quality asset and an attractive addition to our portfolio of assets under management," said Jeff Hanson, (top right photo) president and chief investment officer of Grubb & Ellis Realty Investors.

"The property recently underwent renovations that added new office space to the main structure, as well as a vehicle maintenance building, contributing additional value to the property overall and keeping it attuned to the tenant's needs."

Federal Express Corporation is the sole occupant of 1650 Sunflower and operates the building under a long-term triple net lease.

The property's location 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.

In addition to its close proximity to both airports, the property has the following physical characteristics appealing to Federal Express:

loading capabilities on three sides of the building; drive-around capabilities for circulation; clear height and column spacing for sorting and distribution equipment and a large yard for vehicle storage.

According to Grubb & Ellis Company's most recent Industrial Market Trends Orange County report, the Orange County industrial market posted one of the nation's lowest vacancy rates at 4.6 percent in the third quarter 2008.

The market also posted a vacancy rate below 5 percent for the 11th consecutive quarter.Grubb & Ellis Realty Investors purchased 1650 Sunflower from Panattoni Development Company. Financing was arranged by Gabe Potyondy and James Ko at Allied Irish Banks, p.l.c.