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Steiner Investments, a 1031 exchange investor based in Costa Mesa, bought a 35,500-square-foot building in Irvine that’s fully leased to Tesla Inc.
The flex property at 18011 Mitchell S. in Irvine sold for $21 million, or $592 per square foot. Los Angeles-based real estate development and investment firm North Palisade Partners was the seller in a deal that closed May 28.
Steiner Investments, according to CoStar, was attracted to the property due to Tesla’s long-term lease and the triple-net lease structure.
Building renovations, such as a new roof and office build-out, in 2024 were also factors in the sale.
CoStar data about the property shows 18011 Mitchell S., which was built in 1976, was classified as a showroom and used by Tesla as a collision center.
North Palisade Partners bought the building from The Warmington Group of Companies for $11 million in 2022. Tesla moved into 18011 Mitchell S. shortly thereafter to open a collision repair center.
Located in the Irvine Business Complex, the building is on a 2.4-acre parcel at 18011 Mitchell S. and about two miles away from John Wayne Airport. The single-story facility features 14-foot ceilings and has space for research and development.
Tidemark Real Estate Services Executive Director Pat Lacey brokered the deal on behalf of Steiner Investments. The seller was represented by Topside Real Estate President Rob Rader and SRS Real Estate Partners Senior Vice President Patrick Weibel.
The two most popular vehicles sold in California last year were Tesla’s Model Y and Model 3. Tesla, the world’s most valuable car manufacturer with a market cap approaching $1 trillion at press time, reported sales rose less than 1% to $97.7 billion in 2024 (Nasdaq: TSLA).
Orange County’s Industrial Market
The sale of 18011 Mitchell S. won’t set any records, but the transaction punched above its weight class, when compared to larger industrial buildings that sold last quarter for less than $21 million.
Terra Universal, for example, bought a 60,000-square-foot industrial property at 850-851 Enterprise Ave. in Fullerton for $12.5 million, according to Voit Real Estate Services.
Voit Real Estate Services also showed the 55,300-square-foot industrial property at 8401 Page St. in Buena Park was bought by Products Go LLC for $18.1 million.
Turner Development Corp. acquired the 51,000-square-foot industrial property at 201-302 E. Steven Ave. in Santa Ana for $15.5 million.
The most notable sale of an industrial property this year was The Walt Disney Co.’s purchase of 1501-1601 E. Cerritos Ave. in Anaheim. Disney bought the 407,000-square-foot industrial campus for $124 million.
Steiner Investments sold the building at 18011 Mitchell S. for a profit despite Voit reporting an overall slowdown of the Orange County industrial market.
The real estate advisory firm, in its most recent 2025 report, said the average asking price for Orange County’s industrial market was $378 per square foot, down from $389 per square for the fourth quarter of 2024.
“Although the average asking sales price fluctuates from quarter to quarter due to the varying size of the buildings on the market, there is now a perceptible decline in valuations across the board,” according to Voit Real Estate Services. “Stubbornly high mortgage interest rates are weighing on potential buyers who need to leverage their purchases. Year over year, the average sales price for an industrial building in Orange County is down by 7.84%.”