Harbor Associates and Farallon Capital Management have quietly pulled off a sizable industrial grab in Yorba Linda, closing this week on the Yorba Linda Commerce Center for $81 million. The nearly full 16.5-acre business park totals about 280,000 square feet across 10 buildings and 83 small-bay units, and was roughly 98 percent leased at closing.
The off-market trade was first reported by the Orange County Business Journal, which noted that the seller was an unnamed family that had held the property for more than three decades. The report also lays out the broad spread of unit sizes, which run from roughly 1,200 to 24,000 square feet.
Deal details and financing
Harbor principals say that a wide mix of suite sizes is exactly what keeps local businesses coming back, and partner Rich McEvoy went so far as to call the project “truly irreplaceable in this market,” according to Connect Commercial Real Estate. In a county where smaller industrial spaces are notoriously hard to find, this is the kind of park that rarely hits the open market.
On the financing side, CBRE brokers Shaun Moothart, Bob Ybarra, and Andrew Post arranged an acquisition loan of roughly $56.3 million, provided by an affiliate of QuadReal Property Group, to help fund the purchase, according to REBusinessOnline.
Tenants and building mix
Originally built in 1987, the campus combines 10 single- and multi-tenant buildings on the 16.5-acre site, with units that again range from about 1,200 to 24,000 square feet. It is very much a local-user mix: tenants span art and tutoring studios to small retailers, with the North Orange County Conservatory of Music, the Baseball Softball World sports school, and Reptile Island pet store among the occupants, according to The Real Deal.
The Real Deal also points to CBRE data showing that small-bay availability in Orange County is far tighter than the industrial market overall, a key factor that helped underpin investor interest. In other words, those 1,200 to 24,000 square foot spaces are the hot tickets.
Where the market stands
CBRE's Q1 2026 Orange County industrial figures put overall vacancy at about 5.3 percent, a modest uptick from recent quarters and a reminder that well-leased small-bay parks can still be valuable yield plays. That backdrop helps explain why institutional capital was willing to pay a premium for a nearly full, versatile campus, even in an off-market deal.
Harbor Associates has been active in Southern California value-add and small-bay strategies, and company leaders said they had been eyeing the Yorba Linda park for years before finally landing it, according to industry coverage from Connect Commercial Real Estate. Brokers who worked on the deal suggested that modest capital improvements should be enough to keep the campus competitive for small users while preserving ongoing cash flow for the new owners.
The sale underscores continued investor appetite for locally focused industrial product in Orange County and the premium that well-leased, flexible small-bay parks can command. For tenants, Harbor and Farallon bring deeper capital resources to the table, along with the prospect of targeted upgrades that are meant to enhance the campus rather than disrupt it.
