TUSTIN, CA-HB Tustin Franklin LLC, a venture between Los Angeles-based Hanover Financial Co. and Laguna Niguel-based BR Birtcher Franklin LP, has acquired Tustin Business Center from a private investment group for approximately $17.5 million.
The property is an 11-building, 157,000-sf industrial park in the John Wayne Orange County Airport industrial submarket, according to Mark Macedo, a managing partner and chief operating officer for Hanover.
Macedo says the project was 100% occupied at sale and that the buildings are occupied by industrial tenants that average approximately 1,400 sf. The selling entity, including private individuals and an insurance firm, had owned the project since its original construction in 1976. The buildings are of single-story, concrete tilt-up construction.
The Hanover-Birtcher joint venture plans an exterior renovation to add value and reposition the property. Macedo explains that Hanover, which has completed many value-added deals in Southern California, continues to have an interest in “value-added niche opportunities” in the region.
James Morrison of the The Morrison Co. represented the buyer, and Colliers Seeley International represented the seller. Richard Harris of Newport Venture Capital arranged the equity for the transaction on behalf of the joint venture, and Steve Gunther of Holliday Fenoglio Fowler arranged the debt.
Hanover Financial Co. provides joint venture real estate equity to the small to mid-sized real estate investment and development market. Founded in 1999 and headed by managing partners Macedo and Michael H. Lowinger, the company has acquired and developed approximately $400 million in real estate assets and simultaneously sold over $250 million in property.
BR Birtcher Franklin L.P. is owned by Brandon Birtcher and his affiliates for the purpose of acquiring and repositioning industrial properties in Southern California. Birtcher is also the co-chairman and chief development officer of the Birtcher Real Estate Group of Laguna Niguel.
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