Institutional investor TA Realty sold a five-building, approximately 300K SF industrial property in Buena Park for $71M, or about $236 per SF, property records indicate.

That sale price represents a 73% markup from the property's last sale in 2016, according to the Orange County Business Journal, which first reported the sale.

The new owner of the property at 7050-7150 Village Drive is Newport Beach-based Buchanan Street Partners.

“This is a sizable acquisition in our backyard of Orange County, which is where we want to continue to grow our investment portfolio,” Buchanan Street Partners Senior Vice President Matthew Haugen told the OCBJ.

Buchanan Street has been snapping up properties with "optionality," OCBJ reported. Haugen told the publication the Village Drive options are to raise rents, which are about 35% below average for the area overall, or to break up the buildings and sell them off individually down the road, as they are all on their own parcels.

The office market in Orange County saw a drop in leasing activity in the third quarter, falling to just under 2M SF. That is a 36% decrease quarter-over-quarter and 26% below the five-year average, according to JLL. Vacancy in the market was 2.4%, although sublease space has risen to about 2M SF.

In late 2022, Buchanan Street closed on a 120K SF office property in Laguna Hills, paying just over $28M.

Buchanan Street was looking for properties with lots of options in that deal as well.

"The property’s current zoning allows for multiple investment strategies, including an increase in medical office space as well as the potential development of multifamily," the company said in a release about the sale at the time.

The firm is working through entitlements to convert the property into medical office, Haugen told the OCBJ.