Once a leader in water-conservation efforts in the area, the 7-acre property where Hotel Fullerton stood since the 1960’s will be redeveloped into industrial property.
The $45 Million purchase adjacent to the 91 Freeway represents the high-demand of industrial redevelopment present in Orange County. The move is noted as significant because we typically see office-use property turned into industrial, rarely a hotel property.
Hotel properties that are purchased for the intention of redevelopment are typically reserved for similar uses such as affordable housing projects. However, the land on Burton Street is actually already zoned for industrial only streamlining the process for Rexford Industrial—who plans to construct a 140,000 SF, Class-A building.
Orange County industrial is at record-setting low vacancy rates,” Centennial Advisers North OC Industrial Specialist said. “That, and American supply chain woes, as well as the rise of e-commerce, are reinforcing the need for industrial manufacturing and logistics warehouses.”
Sean Baney
Orange County registered a 1.5% vacancy rate at the end of March forcing investors to get creative with their real estate, of which, industrial redevelopment has been a winning strategy to enter the tight infill market.
Other experts in the area, including Alan Reay of Atlas Hospitality Group, said the property would never have sold for the high $179,000/per room price tag had it not sold as an industrial opportunity.
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