FedEx Building In Costa Mesa Sold For $33.4M

BLT Enterprises Inc., a Santa Monica investment firm, just forked over $33.4M, or $298/SF, to San Diego's Sovereign Capital Management Group for a 112K SF FedEx building in Costa Mesa.

The deal is among the top industrial sales ever recorded in Orange County for price per SF, according to Colliers International. The brokerage's Investment Services Group negotiated the sale.

As part of the sale of the 1650 Sunflower Building, Colliers also negotiated a blend-and-extend lease, allowing FedEx to stay in the building until 2028. The original 10-year lease agreement was scheduled to expire next year.

The 41-year-old building was repurposed nine years ago by then-owner Panattoni Properties.

Improvements to the property include drive in/drive out capability and specialty conveyor and sorting equipment for FedEx’s ground delivery operations. There is also a separate vehicle maintenance facility on-site.

The building is also close to John Wayne Airport and Long Beach Airport, which comes in handy for shipping packages, according to Colliers International Senior Vice President Chuck Wilson.

Colliers Institutional Investment Services Group – Western Region Managing Director Rick Putnam led the negotiating team on the sales side along with Director Eric Cohen.

Wilson and Vice President Brian Chastain negotiated the lease extension. All are based in the firm's Irvine office.

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