A joint venture between Goldman Sachs and Steelwave has sold The Hive, a 181,822-square-foot, three-building creative-office property at 3333, 3335, and 3337 South Susan in Costa Mesa, California, to Invesco Real Estate, according to a release from a representative of Newmark Knight Frank (NKF). The sales price was not provided, but local news sources report that the property sold for $84 million.
Originally developed in 2003, The Hive was recently repositioned after the seller acquired it in September 2015, the release says. The JV invested $22 million into it, transforming it into a creative, class-A environment.
The renovated project features flexible and open floor plans, a new coffee bar adjacent to an outdoor tenant lounge area, state-of-the-art fitness facility with showers and lockers, a conference center, and multiple open-air patios with community activities, according to the statement. Tenants include Los Angeles Chargers, Lazy Dog Café, Coding Dojo, Agility Fuel Solutions, and Steelwave, which occupy 82 percent of the space.
The release also says The Hive is situated on a 14.25-acre land parcel, of which just over three acres of land is being used as the Los Angeles Chargers practice field and is currently entitled for an additional 65,000 square feet of commercial development.
NKF co-head of U.S. Capital Markets Kevin Shannon, executive managing director Paul Jones, managing director Blake Bokosky, and executive managing directors Ken White and Brunson Howard represented the seller in the transaction, while the Invesco, a global real estate investment manager, was self-represented, the statement says.
Jones is quoted in the release as saying, “The Hive is the first office campus of significant size in Orange County to undergo a creative repositioning and be successfully sold. This opportunity received tremendous interest from core capital. Additionally, there is upside through leasing the remaining vacant space, as well as future development potential for this pioneering location in the Greater Airport Area.”
Jones notes in the release that The Hive is situated adjacent to The Press OC, the former 25-acre LA Times site that reportedly will see a significant amount of office and retail redevelopment in the near future, further enhancing the surrounding location.
The Hive is proximate to the 405 and 55 freeways, is 10 minutes from John Wayne Airport and 15 minutes from University of California, Irvine.