An aerial view of UCI Research Park | Courtesy a representative of Irvine Company Office Properties

Deal Sheet – November 2018

Carrie Rossenfeld Deal Sheet

From SoCal Real Estate’s November 2018 issue:

A roundup of CRE leases, sales, and financing

Office
Irvine Company Office Properties has leased 55,450 square feet of the former Broadcom headquarters at UCI Research Park, located at 5301 California in Irvine, California, to LPA Design Studios, a representative of the landlord reports. Based in Irvine, LPA is one of the only design firms in the country that has a dedicated research team and played a key role in the master-planned design, landscape architecture, and signage identity of UCI Research Park, which opened in 1996, according to the source’s statement.

LPA’s relocation to 5301 California will involve consolidating current office space at 5161 California and 130 Theory, the release says, adding that the firm expects to move to its newly designed space in March 2019.

Formerly known as University Research Park, it was renamed UCI Research Park in 2017 to “more closely reflect its proximity to and relationship with the adjacent UCI campus,” according to the statement. The 185-acre business park is home to more than 75 companies and more than 8,000 employees, including Cisco Systems, Intel, Skyworks and Toshiba America, the release reveals.
In addition to being a tenant, LPA is the campus’ interiors in a way that “enhances collaboration and fostes innovation,” according to the release. Additional enhancements include a “chef-driven” café and a conference center with high-tech AV equipment, a spacious entry and reception area, flexible seating for more than 100 attendees, and a large kitchen area for catering opportunities.

The reinvestment is also bringing Irvine Company’s KINETIC wellness amenity to the campus, which includes a private, modern fitness center; group fitness classes; Zagster bike-share program; basketball and volleyball courts; and walking and cycling routes.

UCI Research Park also houses tech incubator EvoNexus, where innovative startups have attracted more than $24 million in funding, and The Cove, UCI’s 47,000-square-foot “Applied Innovation” incubator.

Retail
Merlone Geier Partners has purchased the leasehold interest in Hunter Court, a 127,360-square-foot community shopping center anchored by CVS/pharmacy and a Ross Dress for Less, a representative of Hanley Investment Group Real Estate Advisors reports (HIG). The center is located at 23812-24442 Rockfield Boulevard in Lake Forest, California, just off I-5, and was sold by Bershon Realty Company of Los Angeles for an undisclosed amount, according to a statement from the representative.

Numerous capital improvements have been made to Hunter Court in recent years, including repaving and striping the parking lot in 2016 and adding new storefronts and canopies in 2015, the statement says. In 2013, “Jack in the Box rebuilt its entire restaurant to its latest concept,” says Jeremy McChesney, EVP of HIG, in the statement.

The shopping center was built in 1969 on 9.27 acres and is currently 98 percent occupied. It is located at the signalized intersection of El Toro Road and Rockfield Boulevard, which the rep says has an average daily car count estimated at 75,000. The area also features dense, affluent demographics, with the 5-mile trade area surrounding Hunter Court consisting of more than 280,000 people with household incomes in excess of $107,000, McChesney says in the statement.

In addition to those mentioned, other tenants include Payless ShoeSource, Café Rio, Sally Beauty Supply, OneMain Financial, and HearUSA.

Hunter Court | Courtesy a representative of Hanley Investment Group Real Estate Advisors

Industrial
Man Crates has signed a three-year lease valued at approximately $1.1 million with landlord Gateway Industrial for a 44,674-square-foot industrial distribution suite in the Airway Business Park at 7520 Airway Road in San Diego’s Otay Mesa, California, a representative of Colliers International San Diego Region reports. The space will support the tenant’s men’s-gift-basket manufacturing service, according to a statement from the source.

The statement says the property is located immediately adjacent to the new state routes 54, 125, and 11, affording access to the Otay Mesa Port of Entry and the planned Otay II border crossing. SVP Chris Holder, Mark Lewkowitz, and Will Holder of Colliers International San Diego Region represented the landlord, while Erik Parker and Karl Hansen of CBRE represented Man Crates.

In the statement, Chris Holder says the property offers the tenant space for a manufacturing clean-room area.

7520 Airway Road, San Diego | Courtesy a representative of Colliers International