A three-building commercial complex in Santa Ana will be torn down and replaced by a distribution facility, joining a growing field of logistics buildings sprouting along the southern stretch of the 55 freeway.
Terreno Realty Corp. paid $14.8 million for the property at 1720 E Garry Ave. and plans to spend $40.6 million converting the site into a 91,500-square-foot, rear-load distribution building.
The three existing buildings, which span a combined 105,558 square feet, sit along the southeast side of the freeway, not far from the Dyer Road exit. The complex is leased to a variety of tenants.
Also see: Owners of empty Southern California offices pivoting to apartments, warehouses
Terreno, which owns properties in the Los Angeles area and five other coastal metros, says it already has secured a single tenant for its new warehouse, describing it only as “a provider of temperature-controlled life sciences supply chain solutions.”
The redeveloped site, which will include 145 parking spaces, should be completed by early 2025.
The industrial conversion trend has gained traction in Santa Ana, which has a large cohort of older office and commercial campuses that are struggling to maintain tenants. In May, we reported the owner of a two-building campus in Santa Ana is going to demolish the recently renovated Elevate@Harbor, headquarters of Optima Tax Relief.
Kearny Real Estate Co. and Dune Real Estate Partners are collaborating on a 163,000-square-foot distribution facility that will replace the mid-rise Elevate@Harbor at 3130 and 3100 S. Harbor Blvd. Kearny bought the campus for $34.8 million in 2018 and spent a year on a “multimillion-dollar renovation,” the company said.
Also see: Southern California’s empty offices surge 67% in pandemic era
“Tenants have made changes to how they’re occupying space, and therefore, they are right-sizing or are generally downsizing how much space they use,” Kevin Bender, JLL’s executive managing director in…
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