A Los Angeles real estate developer has purchased a Southern California building once used to construct parade floats for the Tournament of Roses Parade and plans to turn it into a storage facility.
The Magellan Group says it will spend $10.6 million to convert the building into a 79,668-square-foot storage facility with 728 units (see artist’s rendering). The company bought the building — at 1727 Buena Vista St. in Duarte, CA — for $2.15 million in March 2013.
“We found the storage market fundamentals on both a macro- and micro-market level highly appealing,” said Kevin Staley, principal and co-founder of The Magellan Group.
Staley said the company plans to finish the conversion in April 2015.
For 12 years, the building was home to Fiesta Parade Floats, an award-winning float builder for the annual Tournament of Roses Parade. In 2007, the company moved to nearby Irwindale. (Self-storage REIT Public Storage went with competitor Paradiso Parade Floats to build its award-winning float for the 2014 parade.)
Other projects on tap
Magellan recently bought two other sites in Southern California that it plans to redevelop in the near future, but it’s unclear whether if either will become a storage facility. The company purchased a 14-acre site at 1869-2069 Massachusetts Ave. in Riverside, CA, for $6.5 million. Magellan plans to redevelop the property after the existing lease on a manufacturing plant expires.
The company also plans to redevelop a three-building site it bought for $4 million at 5115 Azusa Canyon Road in Baldwin Park, CA, also after existing leases expire. The company has another property under contract as well; details about that deal weren’t available yet.
Staley said the company is pursuing other development opportunities throughout Southern California. In addition to storage, Magellan develops industrial and aviation facilities. Magellan Storage owns and operates six facilities in Los Angeles and Orange counties.