KBS Capital Advisors has purchased City Tower, a 20-story, 435,777-square-foot high-rise office building in Orange, CA, from Torchlight Investors. The $147.25-million sale was facilitated by NKF Capital Markets.
The iconic, class-A tower is adjacent to the UC Irvine Medical Center and is the tallest building in the central Orange County submarket and the third tallest in Orange County. Built in 1988, City Tower is situated on 4.92 acres at 333 City Boulevard West and includes an on-site café and adjacent six-level parking structure. The LEED-Gold-certified property recently underwent a $3-million renovation that included upgrading the lobby, corridors, restrooms and elevator-cab interiors.
City Tower is 78% leased to a roster of tenants that include UC Irvine Medical Center, Enterprise Rent-A-Car, Travelers Insurance and York Risk Services Group. It provides access and high visibility from three major freeways—57, 5 and 22—and is within walking distance to the Outlets at Orange, an 806,000-square-foot dining, shopping and entertainment destination.
NKF Capital Markets’ co-head of US capital markets Kevin Shannon, senior managing director Paul Jones, executive managing director Sean Fulp and director Blake Bokosky represented Torchlight in the sale, while KBS was self-represented. According to Jones, “Central Orange County has been seeing an increase in tenant demand, yet no new office construction, which bodes well for rent growth and asset appreciation.” Jones adds that the strong price of more than $338 per square foot for the asset is “testimony to investor confidence in the submarket as well as the value in this core, high-image office tower.”
by Carrie Rossenfeld