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Boeing Looks to Shed Surf City Office, Excess Land

By Mark Mueller Monday, April 30, 2018 (Orange County Business Journal)

Boeing Corp. has put one of its largest area properties on the market for sale.

But market watchers don’t anticipate a new owner of the eight-story office in Huntington Beach to spend much time looking for long-term tenants if the aerospace and defense giant sells and vacates it.

The general consensus of developers and brokers familiar with Huntington Gateway is that the nearly 30-year-old building is likely to be razed by a new owner to make way for a multibuilding industrial project.

The 285,000-square-foot office near the intersection of Bolsa Chica Street and Bolsa Avenue is surrounded by a large surface parking area. Boeing uses the 30-acre property for its defense, space and security divisions.

The site is apparently big enough for more than 400,000 square feet of warehouse and distribution space, though any development plans would require city approvals.

A project that size would be the largest industrial development in West Orange County in over a decade.

The 14500 Bolsa Chica St. property’s listed for sale by the local capital markets team of Newmark Knight Frank; an asking price hasn’t been disclosed.

A price in excess of $60 million would appear likely, based on current land prices.

A buyer has yet to be selected, according to sources familiar with the property.

Rare Development

Commercial brokers expect a strong reception from potential users of an industrial project there.

“It’s a great site for user-owner product in the 25,000- to 100,000-square-foot range,” said Clyde Stauff, senior executive vice president at the Irvine office of Colliers International and one of the area’s top industrial brokers.

“There’s lots of demand for that type of product, and there’s only one new project being built now (in OC),” he said, referring to Beckman Business Center in Fullerton.

The eight-building Fullerton project, which is being developed by Newport Beach-based Western Realco, is on 44 acres and will hold nearly 1 million square feet of space.

Industrial development has recently been a rarity in OC in general, and around Huntington Beach in particular. Beckman Business Center is bigger than the combined size of all other industrial projects under construction here, none of which are in West OC.

The city’s industrial base encompasses about 14.5 million square feet and has vacancy rates of less than 4%, in line with the tight OC industrial market.

Aliso Viejo-based Shea Properties did the last big industrial project in Surf City, a two-building, 144,000-square-foot development on Gothard Street that opened in 2015.

 

(Original Story can be found:  https://www.ocbj.com/news/2018/apr/30/boeing-looks-shed-surf-city-office-excess-land/)

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