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1/05/23
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Guthrie Development Company has acquired Pacific Tustin Commercenter, a 69.9k sf, Class A multi-tenant industrial and retail business park in Tustin, for $19.7 mil ($282/sf). In the unique transaction, the firm acquired the buildings and land from two different sellers.
“We negotiated the purchase of the buildings at an attractive price because they were subject to long-term ground lease,” says Rob Guthrie, CEO of Guthrie Development. “Simultaneously, we negotiated an off-market purchase of the land at one-third of its market value.”
Upon executing both the property and land transactions, the firm then combined the project, thereby acquiring the entire business park.
Pacific Tustin Commercenter is an institutional quality mixed-use business park located at 1421, 1451, and 1481 Edinger Ave, on the corner of two prominent streets in Tustin, Edinger Ave and Red Hill Ave. Comprising two multi-tenant industrial buildings and a restaurant, Citrus Café, on the corner of the property, the industrial buildings are currently 100% occupied under long lease terms, with the corner unit lease being restructured.
Chuck Wilson and Brian Chastain of Colliers International represented Guthrie Development on the purchase of the buildings. Clyde Stauff, also with Colliers, repped the company on the purchase of the buildings.
In addition to leasing the corner property, Guthrie plans to maximize value by completing a capital repair program which includes re-roofing, landscaping updates, and new project signage, then subdividing and selling the industrial and retail properties as separate investments.
According to Colliers, Tustin’s industrial market has been particularly strong this year, with a vacancy rate of 0.4% and 70.7k sf net absorption at the end of Q1 2022. In addition, the Orange County industrial market experienced continued expansion and profitability in Q3 2022 with a positive absorption for the county’s fifth straight quarter and rising asking rents of 11.9% year over year.
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