An unspecified real estate investment trust has sold Orangewood Office Park at 2100 and 2200 West Orangewood Avenue in Orange, California, to a joint venture between Stillwater Investment Group and Cross Harbor Capital for $18.7 million, according to a release from a representative of CBRE.
The statement says the development is a two-story property consisting of two buildings totaling 107,073 square feet. Tenants at the park include Sherwin-Williams, Networked Insurance Agents, Branded Group Inc., Outfront Media LLC, and Primevalue Technology Corp.
According to the statement, the office park sits within Orange County’s stadium office submarket, which features one of the lowest vacancy rates and highest rental-growth rates in the area.
CBRE’s Anthony DeLorenzo, Gary Stache, David Dowd, and Doug Mack represented the seller in the transaction, the release says, adding that the transaction completes the seller’s planned disposition of 705,000 square feet of office space in Orange County.
DeLorenzo is quoted in the release as saying, “This property presents a smart deal as it was priced significantly below replacement cost in a high-barrier-to-entry market. In-place rents at the building provide a steady income stream while giving the new owner time to consider renovations and elevate this campus into a creative-office space.”
The source says, according to CBRE research, landlords in this submarket that invested heavily in renovations and amenities pushed rents upward, and tenants that viewed real estate as a differentiator for employee recruitment and retention paid more. The market further diversified with expansions from technology and financial-service companies.
According to the statement, real estate values across Southern California have been rising, and CBRE’s Investor Intentions Survey for 2018 put the Greater L.A. and Orange County region at the top of the list for the third year in a row. The average asking lease rate for office space in the county increased 4.3 percent to $2.94 per square foot per month, driven by new completions, remodels and increased demand for creative space, according to the latest research by CBRE, the firm reports.