Orange Bakery, a producer and distributor of frozen pasties, danishes, croissants and specialty breads, is the new owner of a 54,088-square-foot distribution building at 17751 Cowan in Irvine.
The Irvine-based pastries producer bought 17731 Cowan for $30.7 million, or $566.67 per square foot. Xebec, a Dallas-based real estate investment company, was the building’s developer and seller. GAA Architects Inc. designed the building.
17731 Cowan is a brand-new industrial building and was listed for sale by Sean Ahern of Lee & Associates’ Newport Beach office.
Orange County’s industrial market experienced “continued softening” during this year’s second quarter, according to a CBRE report. Highlighting the soft market were rising vacancy and declining asking lease rates.
Overall vacancy reached 4.1% last quarter, a 0.2% quarter-over-quarter increase.
CBRE was optimistic about the state of the industrial market going forward.
“While developers face ongoing challenges in the short term, the market will require new construction projects in the long term” the CBRE report said. “The OC industrial sector’s strategic location near the San Pedro Bay port complex, relatively high rental rates, and constrained new supply continue to position the market favorably for development.”