Newport Beach, California-based North Palisade Partners LLC has acquired the Tesla Motors showroom in Costa Mesa, California, for $9.6 million. The 23,748-square-foot Class A showroom building at 3140 Pullman St. represents North Palisade’s first commercial real estate acquisition in the Orange County market.
The investment and development firm purchased the building earlier this year from the Steven C. Millen Family Trust. Located in the heart of Orange County’s airport area submarket along the 55 freeway, the Pullman site serves as Tesla’s largest sales and delivery center for the Orange County marketplace. Tesla’s 40,000-square-foot service center for Orange County customers is located nearby at 3120 Pullman. Joe Mishurda, managing partner for North Palisade Partners, said the Tesla acquisition offered the ideal opportunity for the company’s first Orange County acquisition.
“Without a doubt, Tesla is one of the most exciting and innovative companies in the world, and we are excited to work with such a prestigious tenant,” Mishurda said. “The robust market fundamentals in the airport area submarket were a primary reason for the acquisition. However, we also saw this as an outstanding chance to purchase a high-profile, Class A property in a submarket with little to no developable land and numerous conversions of warehouse space into higher and better uses.”
North Palisade Partners has acquired seven industrial and logistics assets representing $80 million of total capitalization since its founding in 2018. The assets, four existing buildings and three development sites, are well-located properties in Southern California, including Rancho Cucamonga, Commerce, Lynwood and San Dimas. The company is led by Mishurda, a longtime commercial real estate veteran who has acquired or developed more than $1 billion in investments and developed nearly 4.3 million square feet of industrial product over his career.
Prior to establishing North Palisade Partners, Mishurda was a partner and the chief financial officer for Pacific Industrial LLC. Richard Schwartz with the Ontario, California, office of Colliers International represented North Palisade in the Pullman Street acquisition. Dale Camera with Lee & Associates in Irvine, California, represented the seller in the transaction.
North Palisade Partners is currently seeking to acquire well-located infill industrial and logistics properties located on two or more acres throughout Southern California. The company focuses on either ground-up development or value-added opportunities that can be successfully repositioned or renovated.