News Summary
SA Recycling has successfully acquired the Tustin Executive Center for $18.2 million, reflecting an 11% discount from its last sale price in 2014. The property spans 90,932 square feet and represents a strategic move for SA Recycling to consolidate its operations in Orange County. The acquisition is part of a trend in active office property transactions in the region, showcasing the competitive landscape of Tustin’s commercial real estate market. With the recent vacancy of Alliance Funding Group, the demand for class A office spaces continues to rise.
Tustin, California
SA Recycling, a metal recycling company headquartered in Orange County, has acquired the Tustin Executive Center for $18.2 million. This purchase represents an 11% discount compared to the property’s last sale price of $20.4 million in 2014. The acquisition underscores the current trends in the commercial real estate market and highlights the strategic growth intentions of SA Recycling.
The Tustin Executive Center, located at 17542 E. 17th St. in Tustin, spans 90,932 square feet. The purchase price translates to approximately $200 per square foot. The deal was completed as an off-market transaction, with SA Recycling purchasing the property from DWS Group, a San Francisco-based asset manager.
Prior tenants of the Tustin Executive Center included Kaiser Permanente and Alliance Funding Group. However, Alliance Funding Group has recently vacated its office space to relocate to 18231 Irvine Blvd. in Tustin. The building, which features an attractive brick and glass design, has visibility from East 17th Street and was originally developed by Allianz Commercial in 1984.
Historical Context and Market Trends
DWS Group acquired the Tustin Executive Center in April 2014 for $20.4 million from the Illinois State Board of Investment. The latest transaction further demonstrates active movements in the office property market, specifically within Tustin and broader Orange County. As of now, the office market in Tustin comprises 61 buildings totaling 1.8 million square feet, with a vacancy rate of 15%.
There are currently only four class A office options available in Tustin, accounting for 430,000 square feet of space, and the completion of the Tustin Executive Center transaction has removed 30,000 square feet from market availability. SA Recycling, which plans to occupy the entire second floor of the building measuring 25,198 square feet, is focusing on consolidating its operational footprint within the region.
SA Recycling’s Business Profile
Founded in the 1970s, SA Recycling specializes in metal recycling and operates 125 locations across 15 states. The company reported an annual revenue of $3.4 billion for 2024, ranking it as the ninth largest private company in Orange County, with approximately 415 employees in the area.
The recent acquisition reflects an overall active market for owner-user transactions in Orange County, with 17 transactions amounting to over $238 million occurring in the past year. While core properties in Irvine command premium prices between $260 to $280 per square foot, properties in secondary markets like Tustin are trading closer to $180 to $205 per square foot. The average price per square foot for office transactions in Orange County stands at approximately $233, which is 13.7% lower than the five-year average.
Looking forward, future pricing in the Orange County commercial real estate market is anticipated to remain stable, projected to range between $230 to $250 per square foot. This context of stability, combined with rising office space demand and tenant displacement in the region, sets an intriguing backdrop for the ongoing evolution of Tustin’s commercial landscape.
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Additional Resources
- Orange County Business Journal: SA Recycling Drops $18.2M for Office
- Wikipedia: Tustin, California
- Orange County Business Journal: SA Recycling Buys Tustin Office Building
- Google Search: Commercial Real Estate Market California
- Encyclopedia Britannica: Recycling
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
