Illinois-based NAI Hiffman sealed a major industrial deal in Orange County this week. The firm’s Industrial Capital Markets Team, alongside NAI Global Corporate Services, orchestrated the sale and short-term leaseback of JCPenney’s Buena Park, Calif., distribution center, to CenterPoint Properties. Though the sale price has not been disclosed, data gathered by Yardi Matrix shows that the property at 6800 Valley View St. changed hands for $131 million, or $119.36 per square foot.
The sale of JCPenney’s West Coast distribution facility, now renamed CenterPoint SoCal Logistics Center, is reportedly the largest contiguous single-tenant transaction in Orange County in the last 25 years. CenterPoint Properties is a privately-owned real estate development company headquartered in suburban Chicago, that focuses on owning and developing large industrial real estate tracts.
The 1.1 million-square-foot facility was developed in two phases, the first one completed in 1967 and the second in 1990. The property, which features one of the largest blocks of distribution space in the area, served as one of JCPenney’s main distribution centers for five decades. Earlier this year, the company announced plans to close down the distribution center in Buena Park and relocate the operations to the Inland Empire. The retailer also plans to close down up to 140 stores nationwide and initiate voluntary early retirement for roughly 6,000 employees, according to The Orange County Register.
CenterPoint Properties’ new Buena Park asset is conveniently situated within the booming Los Angeles commercial real estate market, as well as the Mid-Counties/North Orange County industrial submarket. The property offers easy access to the area’s interstate system, The Port of Long Beach and The Port of Los Angeles. The Class B industrial facility includes 154 dock-high loading doors, 263 trailer parking spaces, as well as loading on three sides featuring 190-foot deep truck courts. According to NAI Hiffman, the property attracted various investors looking for viable redevelopment opportunities on the limited-supply Orange County market.
The NAI Hiffman team representing the owner in the transaction included Pat Sullivan, Ryan Chambers, Adam Roth, Brett Spitzer, Joe Howell, Nicholas Chang and Richard Lee.