BD Commercial Group was retained by Equus/Innova Products Inc/Car MD. who’s operations were formerly located in Fountain Valley, CA. Our client was leasing multiple industrial facilities adjacent to each another. We had an extensive consultation at the onset of the process with our client, we illustrated the long term benefits of ownership vs. leasing.
We engaged multiple properties simultaneously and leveraged each opportunity against the next to achieve a price not seen since through the downturn for its respective size. Our client consolidated their five facilities they were leasing and acquired a freestanding 95,000 sq ft facility in the heart of the Irvine Business Center. It was the largest industrial transaction seen in Irvine in 2010. The property was mapped and constructed for 23 industrial condo units, therefore the property needed extensive improvements in order to re-configured for a single user.
The principals of Equus/Innova had affinity for the area’s future upside and the multiple exit strategies the property itself possessed. The properties condo map and location in an overlay zone added to the future residual value. 17352 Von Karman as of March 2012 is now home Equus/Innova’s United States corporate headquarters, distribution and R&D.
Precision Optical has been a long time family owned and operated company that was formerly leasing two freestanding facilities on the Westside of Costa Mesa, CA. The company and family had close ties to the City of Costa Mesa and the community. Available opportunities were drastically narrowed because they: 1) wanted to remain in Costa Mesa 2) being a highly specialized optics manufacturer, they required a unique property. We toured extensively over the course of the next year. BD Commercial Group’s knowledge of the inventory played a pivotal role in acquiring the property. The subject property had been on the market for over 24 months with two listing teams. We did not present the property knowing that it was overpriced.
The seller had been chasing the market since they “added value” in 08, in an attempt re-capture the capital improvements vested the seller was reluctant to adhere to market pricing. A dramatic price reduction was finally made at which point we immediately moved to present the opportunity Precision Optical’s principals. Our client, knowing the scarcity of equitable and suitable opportunities was aggressive in their pursuit and we had the property under contract the following week. Despite all amenities the property offered, Precision Optical Inc’s executive staff, consultants, contractors and engineers spent the next 18 months after the close of escrow coordinating, planning and implementing the re-location of their Westside operations to 320 Kalmus. As of December of 2011 the facility is now host to one of the most innovative and prominent optical manufacturers in the United States.
Eden Outsource had long been leasing warehouse space from Toshiba in the Irvine Spectrum industrial market. With a nearly 40% increase in annual revenue from 2010 to 2011, Eden Outsource found themselves in need of additional warehouse space.After analyzing all on and off-market opportunities, we identified four suitable distribution facilities and began simultaneous negotiating on each.
By leveraging our proprietary market data and understanding the nature of today’s market, the BD Commercial Group was able to negotiate a 35,988 sf lease with the Irvine Company at a lease rate not seen in the Irvine IBC in years. Eden outsource will be moving into their new Headquarter distribution facility by the end of April 2012.
Mike Barreiro & Gavin Denniston of DAUM Commercial & the BD Commercial Group represented long time client Pacific Carpets of Huntington Beach on this owner/user/investment acquisition.
MIKE BARREIRO SOCIAL MEDIA:
GAVIN DENNISTON SOCIAL MEDIA: