(9/27/2013, Cypress/West Orange County) The OC Register confirmed in a print article in today’s The Pier information reported here several months ago: That Christo Bardis has offered to buy back the 33 acres fronting on Katella he and his partner, Dr. Ed Allred sold to ProLogis the last day of last year.
When we reported on that a few months ago, we indicated that ProLogis was not interested in selling the land back. The fact that it is being reported again now indicates the proposal is still in play at least.
In a surprising and hopefully positive twists, Bardis also indicated, according to the Register, that he & Allred “ would try to pursue what they promised for the land in June 2012 – a senior-living facility.”
However, the Register article seems to imply that Measure L’s Continuing Care Facility, complete with nursing home and possible Memory Center, probably would not be in that proposal:
Part of the reason that fell through was because it was going to take too much time and money and would require going through state bureaucracy. As such, the pair wouldn’t follow the same plans, Bardis said, but would try to do something similar.
What happened to the Original Continuing Care Facility?
The Register’s Rebecca Kheel and Asher Klein are to be commended for getting to the bottom of why the original proposal was switched to ProLogis. They confirmed what we’ve contended here for months, based on our sources: That the Senior’s Facility deal didn’t fall apart, but that ProLogis came in with a higher offer with a quicker close:
Justin Wilson, chief operating officer of Continuing Life Communities, confirmed that his company was interested in buying the land in June 2012 for a senior-living facility. But Bardis and Allred wanted to close a deal by the end of year, which the company could not do.
“An industrial company came out of nowhere and said they would do that,” Wilson said. “We were very interested in the land.”
As I’ve indicated before, the fact that a Continuing Care Community couldn’t be closed in such a short time should hardly take anyone by surprise, as the state requirements are well known.
Will ProLogis sell it back?
The new owner, industrial developer Prologis, originally proposed building 725,000 square feet of warehouse, distribution space, light-manufacturing and office buildings. But residents in Cypress and neighboring cities were infuriated at the proposal. Since April, Prologis has been reconsidering what to do with the land.
Atle Erlingsson, spokesman for Prologis, would not rule out selling the land back to Bardis and Allred. But should Prologis move forward with development, Erlingsson said, the project would include far fewer truck bays than the 129 initially proposed.
“Everything is being considered except the initial proposal,” Erlingsson said.
Bottom line: ProLogis sees big bucks if they can develop a 725,000 square foot project with fewer truck bays, at least initially. Unless they see strong opposition, they appear to be ready to try again with a new proposal. As a REIT, what ProLogis does is develop and then lease and/or sell industrial buildings, primarily with some Logistics capacity, as the name “ProLogis” implies.
How long Bardis and Allred’s buy back offer will stand is unknown, as is how much they are offering ProLogis to buy it back.
Erlingsson can be reached at firstname.lastname@example.org or by calling (415) 733-9495.
ProLogis CEO, Hamid Moghadam can be reached at ProLogis Corporate Headquarters, Pier 1, Bay 1, San Francisco, CA 94111 or 415-394-9000, or possibly via email@example.com
Click here for our Highlands’ Guy’s post on contacting ProLogis’ management, “Straight to the top.”
Click here for the Register’s article, “Former land owners offer to buy back 33 acres.” A shorter version of the article can also be found, on page 3 of today’s The Pier section of the Register, which also includes a page 1 article on Los Alamitos Race Course adding thoroughbred racing (mentioned in our article, Racetrack moving forward with expansion.”
Click here for my letter to the News Enterprise, “Senior care is only option for 33-acre Katella project.”
The Pier is included every Friday in the Register in Los Alamitos, Rossmoor, and Seal Beach. It seems to be getting better every week. Kudos to the Register for covering these important issues.
As always, your perspective, diplomatically expressed, is welcome, as is forwarding this post using the links below.