Located near the Ports of Los Angeles and Long Beach, the property, which is currently 60% leased, features direct access from several major streets and has three rail spurs/side tracks on site. HP has commenced the first phase of renovation at the site and will offer approximately 45,000 square feet of buildings on 4 acres of land for immediate lease. Shirn tells GlobeSt.com that improvements include repairing the roof, asphalt and building systems and renovating the offices. The renovation is projected to cost nearly $5 per square foot.

HP is looking to attract a port-related tenant that can utilize the land and existing clear span structures for storage, Schirn adds. “The portion of the property that is available for lease is very secure as it is located at the end of a cul-de-sac and has a full-time security guard. Ideally, the space currently available will be leased to one tenant, but HP is amenable to dividing the property among several tenants.”

“Despite the risk profile of this investment, the strategic location of this asset in an area of strong demand surrounded by high-quality industrial and retail product makes this a tremendous acquisition for our firm,” says Rob Neal, managing partner of HP. “We look forward to repositioning this property in incremental stages throughout the next decade.”

The Mission Viejo property closed escrow within five days of removing contingencies and within 15 business days of entering into contract. Shirn tells GlobeSt.com that the property was acquired using all cash due to the short escrow period and that HP plans to obtain a loan for the property in the near future and hold the asset for a long period.

Situated off Jeronimo Rd., between Alicia Parkway and Los Alisos Blvd., 26021 Pala Dr. benefits from close proximity to the San Diego Freeway. Notable features include three 12x16-ft. ground-level doors, two fenced yards, 12,359 square feet of office space and 4,339 square feet of shop space. Schirn tells GlobeSt.com that the property is currently occupied by Medix, an ambulance-services company that has been located at the property for over 15 years. No improvements are planned, since the tenant has a triple-net lease.

“This functional building is well-located in the High Park Business Complex in Mission Viejo, making an attractive location for a small firm,” says Neal. “The Orange County market continues to provide us with opportunities to leverage our strong cash position to acquire properties that can produce excellent yields.”

As GlobeSt.com previously reported, last August Hager Pacific acquired another industrial building in Pomona, CA: 2801 South Towne Ave., a 184,455-square-foot property on 15.13 acres that formerly was a commercial bakery. At that time, Neal said that the company planned to improve the property, which was vacant, and to offer it for sale or lease to a food user or general warehouse user. The property, at the northwest corner of Towne Avenue and Riverside Drive, was acquired from Interstate Brands Corp. for an undisclosed price.