REAL ESTATE : Japanese Buying County Buildings at Accelerated Pace--$310 Million in ’88

So far this year, the Japanese have bought $310 million worth of commercial and industrial buildings in Orange County, says the Newport Beach office of accountant Kenneth Leventhal & Co.

If that pace continues, according to Michael Meyer, managing partner of the office, Japanese investment could reach $465 million, or 28% more than the previous 3 years combined.

Meanwhile, the Japanese bought nearly $9 billion worth of real estate across the nation, a pace that could exceed last year’s record $12.8 billion. California was the leading state for Japanese purchases, with 28% of the total.

While Orange County had an impressive amount of purchases, it still trailed suburban areas in other parts of the nation, Meyer said. The Japanese and other foreign investors have been turning increasingly to the suburbs, as many of the best buildings in the nation’s cities have already been bought.

And the types of buildings the Japanese are looking for in the county are also expanding, Meyer said, from mostly offices to now include stores and hotels.

For instance, Orient Finance Co. bought 18 acres across from the MainPlace shopping mall in Santa Ana for $23.5 million and plans a hotel, office and a residential project to start next year.

“The Japanese are slowly beginning to expand into new investment areas in Orange County and will continue to diversify their holdings at an increasingly rapid pace as they become more familiar with the county’s market and major players,” Meyer predicted.