Centerpointe’s 3 Phases: Leased, Done, Planned : Second Installment Completed at La Palma Complex Following Rental Success With First
In the midst of a well-publicized glut of office and research-and-development space in Orange County, construction has been completed on the $20.5-million, 175,200-square-foot second phase of Birtcher Centerpointe La Palma.
The $26-million, 300,000-square-foot first phase of the 42-acre project at Valley View Street and Orangethorpe Avenue in La Palma is fully leased, prompting construction of the second phase and planning for the $40-million third phase, scheduled for construction later this year, according to Rick Lutzky of Birtcher, the Laguna Niguel-based developer.
Northern Telecom has leased 13,750 square feet in an R&D; building in the second phase, representing 15% of the R&D; space, he said, adding that negotiations are under way for the office space and the remaining R&D; space.
The project represents a major investment in Orange County by MONY Real Estate Investment Management, Irvine, Birtcher’s joint-venture partner, according to MONY real estate vice president Walter A. Behn.
“Centerpointe has emphatically proved our contention that there is a pent-up demand in La Palma for this sort of well-planned project,” he said, adding that tenants in the first phase include ADP, Prudential Insurance, Frontier Bank, Federal Express, Southwest Savings & Loan, Century 21, Northern Telecom and Olympus Corp.
Greg Brown of the Anaheim office of Coldwell Banker Commercial Real Estate Services, estimated that there is a 23% vacancy factor in Class A office space in Orange County. His office handles leasing for the project.
“This development is the first major construction in a submarket that is part of the Artesia (91) Freeway corridor--which is rapidly replacing the Santa Ana (5) Freeway corridor as the place to build office space,” Brown said.
“The first phase includes a 162-room Day’s Inn Hotel, a 20,000-square-foot retail center, and four major restaurants: Chili’s, Seafood Show, Le Peep and Togo’s.”
The focal point of the latest phase is a four-story, 81,970-square-foot building designed by Ware & Malcomb Architects Inc., Irvine. The building has a blue-and-silver glass and white concrete exterior and can accommodate either a full-building tenant or multiple tenants with suites divisible to 1,000 square feet, Brown said.
The second phase also includes an additional 92,200 square feet in three buildings, the largest of which has 52,000 square feet. Each building offers ground-level loading with 16-foot clearance heights.
Birtcher’s projects include the Pacific Design Center in West Hollywood, the Los Angeles Wholesale Produce Market, Tri Centre in Orange and Xerox Centre in Santa Ana.
