Office deals keep getting larger. Kelemen Company has purchased The Atrium, a 302,877-square-foot, 10-story trophy office asset located at 19100 and 19200 Von Karman Avenue in Irvine, California, for $106.75 million, a representative of NKF Capital Markets reports. The seller was Barings Real Estate, part of Barings LLC, according to a statement from the representative.
NKF Capital Markets’ co-head of U.S. capital markets Kevin Shannon, executive managing directors Paul Jones, Ken White, and Brunson Howard, and managing director Blake Bokosky represented the seller, while the buyer was self-represented, the release says.
The sale of The Atrium represents the fourth one that is over $100 million since the first quarter of 2018 in Orange County, and the NKF Capital Markets team has represented the sellers on three of those sales, the statement says. In March, SoCal Real Estate reported on the sale of City Tower, a 20-story, 435,777-square-foot high-rise office building in Orange, California, which KBS Capital Advisors acquired from Torchlight Investors for $147.25 million; and in June, we reported on the sale of The Summit Office Campus, a five-building, 479,451-square-foot mid-rise office project in Aliso Viejo, California, which sold to Rockpoint Group LLC for a reported $150 million-plus. In January, NKF Capital Markets also represented Ocean West Capital Partners in the sale of 2600 Michelson, a 16-story, 311,000-square-foot office tower in Irvine, California, which sold for $120 million to CB Global Investors.
The release says The Atrium was built in 1986 and underwent a $5.3 million capital-improvement program in 2015 that included upgrades to the atrium lobby, common areas, exterior courtyards, restrooms, and elevator cabs and lobbies. The property is currently 90 percent leased to several tenants including Premier Business Centers and Severson & Werson, says the statement.
John Kennedy, Western region managing director for the real estate equity group at Barings, is quoted in the release as saying that the firm’s leasing efforts were instrumental in the success of the sale in that they led to strong recent leasing that positioned the property for sale and allowed Barings to exit the asset successfully and complete its investment plan.
Jones is quoted in the release as saying, “The Atrium was an excellent mark-to-market opportunity in a uniquely designed building attracting both traditional and creative tenants.” He adds that the Keleman is planning an extensive interior and exterior renovation that will push market rents for the property even further.
Jones also is quoted as saying, “There continues to be a tremendous amount of both foreign and domestic capital focused on acquiring best-in-class office properties throughout Orange County, and we see this continuing into 2019.”
Some of The Atrium’s distinguishing features include an enclosed 10-story atrium lobby with interior and exterior balconies, 24/7 security and access, a café, and surface and structured parking, according to the statement. In addition, Bistango restaurant has been located on the property’s ground floor since 1988, and the release cites this as another appealing feature.