417K-sq.-ft. facility located near Orange (57), Riverside (91) freeways
An Iowa-based foam manufacturer has paid $145 million for a facility it operates out of in Fullerton, marking the priciest single-property industrial sale in Orange County this year.
Property records indicate that Future Foam, a Council Bluffs-based maker of a variety of flexible polyurethane foams used in bedding and other products, recently completed the purchase of 1050 S. State Blvd., a roughly 417,230-square-foot industrial building located at the corner of State College and Kimberly Avenue.
The manufacturer had previously been a tenant at the building, which was sold by another Iowa firm, Des Moines-based investment firm Principal Real Estate Investors.
The sale works out to be nearly $350 per square foot for the facility, which CoStar records indicate is located on a nearly 17-acre site that’s a few blocks from the intersection of the Riverside (91) and the Orange (57) freeways.
Owner-User Premium
By total price, the deal for the Fullerton facility marks the largest single-property industrial sale in OC in nearly three years, CoStar records indicate. The only other industrial building in the area to sell for more than $100 million in 2025 was 1501 E. Cerritos Ave., a roughly 407,000-square-foot building that’s about two miles east of Disneyland.
That two-building property was bought earlier this year by Walt Disney Co., which had already been leasing the site for its local operations. Disney paid $124 million, or about $305 per square foot, for the Cerritos Avenue site.
The second biggest owner-user transaction of the past quarter was the $30.7 million purchase of a newly built building in the airport area of Irvine, by Orange Bakery. The food maker paid a reported $567 per square foot for the 54,100-square-foot building along Cowan Avenue, located next to its current headquarters.
Connected Facilities
Future Foam traces back to the 1950s and counts a sizeable real estate presence in the U.S., with nearly 30 facilities to its name. Its presence in Fullerton goes back to the early 1980s.
Its only two Southern California locations are in Fullerton; it lists both the State College facility and an adjacent property at 2451 Cypress Way as being separate facilities with different specialties, though the buildings are connected and were both part of the $145 million sale.
Newmark’s Jeff Read represented principal in the sale, while the buyer was represented by Ashwill Associates.
The State College facility is used for manufacturing bedding, furniture and other products, according to the company’s website. The Cypress Way portion of the facility is used for carpet-cushion manufacturing.
The buyer took out a $40 million loan from First National Bank of Omaha to fund the deal, CoStar records indicate.
Vacancy Up, Rents Down
The sale comes amid signs of a slowing industrial market in OC.
The vacancy rate for OC industrial properties stood at 5.1% at the end of the third quarter, according to a recent report from commercial real estate brokerage Colliers. That’s up from 4.7% a quarter ago and is 1.6% higher than this point a year ago.
OC’s all-time lowest vacancy mark was 0.9%, set in late 2022, Colliers reports.
The uptick in vacancy comes as more supply is being added to the area, with nearly 700,000 square feet of new industrial buildings completed last quarter, and another 1.5 million square feet currently underway.
Monthly rents for industrial buildings now average about $1.51 per square foot, according to Colliers data. That’s 26 cents per square foot below the all-time high for the area, set in mid-2023.
Rents are still 57% higher than pre-pandemic levels, the brokerage reports.
