The Wang Family Trust has purchased a 25,918-square-foot office building located at 20377 Southwest Acacia Street in Newport Beach, California from BLD Ventures LLC for $10.5 million.
The Irvine office of Lee & Associates negotiated transaction. SVP Brian Garbutt represented both parties.
“The property entered escrow within 24 hours of being on market at 96 percent of asking price with multiple offers on the table,” says Mr. Garbutt. He adds that the seller signed a 10-year lease at close of escrow.
According to Kidder Mathews’ Q1 office report for Orange County, 2018 is a good time to be an owner or a seller in this market as investors continue to target it, regularly trading trophy properties and office campuses. This year started off strong with the sale of Orange County’s tallest building, The City Tower selling at $147 million. The average sales price in Q1 for office investment assets was $254.10 per square foot, slightly declining 0.95 percent from this time last year. Total dollar volume for office-asset sales was over $330 million from 26 transactions.
CBRE reports that Orange County office investors are focused on value-add, with buyers purchasing office product and focused on renovations and rehabilitations in Q1. Investors looked to add value and increase demand and asking rates by implementing minor facelifts to create a more attractive and modern office or major restorations to revamp older spaces. The top three deals totaled $224 million and were all renovation/rehabilitation opportunities for investors that planned to substantially spend to meet occupier needs.