SANTA ANA, CA-A new trend of certain industrial properties being repositioned as retail and showroom properties is emerging in Orange County. Investment and management firm MCA Realty is furthering this trend by purchasing Brookhollow Freeway Showroom Center, an 87,609-square-foot multi-tenant industrial/retail property here, from a Seattle-based investment manager for $9.5 million; MCA plans to reposition the property as a retail destination center.

MCA was represented in the acquisition by Joe Winkelmann of Voit Real Estate Services. The seller was represented by Mike Hartel and Kevin Turner, also of Voit. The three brokers will also handle leasing of the property. MCA was able to open escrow at a favorable basis as a result of the firm's relationship with the local brokerage team that handles leasing for the project.

“This property presents enormous potential to tenants looking to attract new customers based on its location, freeway visibility and size,” says Tyler Mattox, principal at MCA Realty.

Brookhollow, which consists of four separate buildings that are visible from the 55 freeway, was acquired as an off-market transaction. MCA plans to implement improvements and complete the leasing of the center, which was 63% occupied at the time of purchase by Bestwinesonline.com, Kid's Room Furniture, Sit n' Sleep and AGR. One of the property's four buildings is vacant and is divided into two suites of 15,894 square feet and 16,006 square feet, which MCA plans to market for lease.

“Southern California's multi-tenant industrial market is progressing in a unique way,” says Mattox. “Selected high-visibility industrial properties are being renovated into contemporary showroom projects. Owners and investors are creating spaces that deliver a distinctive experience to consumers.”

Mattox adds that today's investors have new opportunities to transform older multi-tenant properties into hubs for shopping, dining and more. The SoCo center in Costa Mesa, a unique destination for interior-design trade, boutique shopping and dining, is an example of this new evolution.

“By repositioning multi-tenant industrial properties and creating destination centers, owners will be better able to attract and retain strong tenants, which will ultimately have a positive impact on an investor's bottom line,” says Mattox.

As GlobeSt.com reported exclusively in October, MCA Realty has completed its fifth industrial acquisition of the 2013 calendar year in the Las Vegas market. At the time, Mattox said that the area is an “extremely attractive investment market on a relative value basis.”