Keller & Sons Construction has sold two class-C industrial warehouses under 7,000 square feet in Costa Mesa, California, to two private buyers. According to DAUM Commercial Real Estate Services EVP Mike Barreiro, who directed the sales on behalf of the seller, the buyers in both transactions reside in the local area and plan to repurpose the industrial warehouses as personal offices, garages, and storage space.
Due to their prime location in westside Costa Mesa, the assets both sold for approximately $379 per square foot, more than twice the average price-per-square-foot in Orange County, despite their vintage of more than 45 years and lack of modern industrial features, Barreiro says.
The warehouses, which were constructed in 1971 and 1972, both feature secured fenced yards, drive-in/grade-level doors, 13-foot clear height, warehouse skylights, office space, and upgraded roofs. The properties are located at 1635 Ohms Way and 1621-1625 Ohms Way in Costa Mesa.
The 6,498 square-foot property at 1621-1625 Ohms Way was sold for $2.46 million; the buyer was represented by Steven Card and Christopher O’Connor of Savills Studley. The 6,897-square-foot building located at 1635 Ohms Way was sold for $2.62 million.
“Because of the severe lack of available inventory in the Costa Mesa area, we have seen older warehouses, which are essentially obsolete for today’s industrial users, transformed into several uses including restaurants, music venues, and doggy daycares,” Barreiro says. “As demonstrated by these sales, we are now beginning to see a trend of local residents purchasing warehouses and repurposing them as personal offices or as storage, such as garages for their exotic car collections.”
Affluent residents in Costa Mesa and nearby cities such as Newport Beach are essentially utilizing class-C industrial buildings as an alternative to renting space in self-storage facilities, with the added benefit of acquiring an investment property, Barreiro notes. “This presents the opportunity for owners to not only have a customized storage space, but also to own real estate in a competitive market.”