Motive Energy Unlocks Capital with $22.25M Sale-Leaseback of Tustin Legacy Facility

Voit Real Estate Services has orchestrated a significant $22.25 million sale-leaseback transaction involving a trophy industrial asset in the highly sought-after Tustin Legacy District. The deal, spearheaded by Voit Executive Vice President Peter Castleton, saw Motive Energy—a national leader in advanced energy and connectivity solutions—divest its 55,022-square-foot facility to a private investor while simultaneously securing a long-term lease to maintain operations.

According to Connect CRE, the transaction was structured as a strategic sale-leaseback, allowing Motive Energy CEO Bob Istwan to unlock embedded real estate equity while retaining operational control of the facility. The property, classified as a trophy industrial asset, commanded strong interest due to its prime location within the master-planned Tustin Legacy community and the quality of the tenant-in-place.

Key Details

The transaction closed at a price of approximately $404 per square foot, reflecting the premium commanded by institutional-quality industrial product in Orange County's supply-constrained market. Key transaction specifics include:

• Sale Price: $22,250,000
• Building Size: 55,022 square feet
• Price Per Square Foot: ~$404 PSF
• Location: Tustin Legacy District, Orange County, CA
• Seller/Tenant: Motive Energy (represented by CEO Bob Istwan)
• Buyer: Private investor (undisclosed)
• Brokerage: Voit Real Estate Services (Peter Castleton)

Market Impact

This transaction reinforces several critical trends shaping Southern California's industrial real estate landscape.

First, the sale-leaseback structure continues to gain traction as a strategic capital tool for growing companies. For Motive Energy, the arrangement provides immediate liquidity to reinvest in core business operations—particularly relevant for technology and energy firms requiring substantial R&D capital—while avoiding the disruption of relocation.

Second, the pricing achieved underscores the persistent bid-ask spread compression for trophy industrial assets. Despite broader market headwinds including elevated interest rates, institutional-quality properties in infill locations with strong tenant credit profiles continue to command premium valuations. Orange County's industrial vacancy rate remains historically tight, and new construction in the Tustin Legacy area is virtually nonexistent due to land constraints.

Finally, private investor appetite for single-tenant industrial assets remains robust. With cap rates stabilizing and long-term lease commitments offering predictable yields, private capital is actively pursuing sale-leaseback opportunities that offer both income security and potential appreciation in land-constrained submarkets.

For CRE professionals, this deal signals that well-located, tenant-occupied industrial facilities remain highly liquid despite tighter financing conditions. Owners of similar assets should consider whether sale-leaseback structures might unlock hidden value while preserving operational continuity.