COMMERCIAL
New York-based Emmes Group of Cos. is looking to acquire 2 million to 4 million square feet of Orange County office space in the next few years.
For now, the real estate investor is focusing its efforts on leasing up its one big local property, the Park Place office tower now known as The Michelson.
Emmes bought the building from Los Angeles-based Maguire Properties Inc. in June, about two years after it was built, paying $160 million for the 531,000-square-foot tower.
The building’s about 60% full, with law firms taking up the bulk of the space at the 19-story tower so far. Most of the empty space at The Michelson is on lower floors; Costar Group Inc. lists monthly asking rents as negotiable.
Leasing inquiries—primarily from tenants already based in the area—have been picking up the past few months, said Brian Harnetiaux who heads up leasing for the Newport Beach office of Emmes. The company’s looking for tenants that want at least 7,500 square feet.
The company’s also considering converting some of the unleased space into “spec suite” space, move-in-ready space for smaller tenants, similar to what Newport Beach’s Irvine Company has been doing to fill space in some of its higher-end offices.
Emmes has made some small changes to the building since taking over ownership, including work on some elevators and empty space. But for the most part, the focus has been on showing off the tower’s existing features and highlighting its proximity to some of the area’s big destinations.
There’s been no shortage of high-end tenant improvement work done at the property so far, which the new landlord also has been showing off. Several of the building’s largest legal tenants—which include Bryan Cave LLP, Gibson, Dunn & Crutcher LLP, Greenberg Traurig LLP and Jones Day—have entrances to their multifloor offices with fancy staircases that connect the floors.
On the top floor of the 19-story building, Hyundai Motor Finance Co. has set up a high-end, lounge-like area for employees to eat meals, relax and enjoy the view from the tower, which overlooks the San Diego (I-405) Freeway.
Hyundai signed a nearly 100,000-square-foot lease about a year ago and moved in a few months ago. The “Hyundai Capital” name is set to put on the top of the building by the end of the year, according to Harnetiaux.
Ensign Expansion
Ensign Group Inc., a growing nursing home company that went public about two years ago, just re-upped the lease for its headquarters in Mission Viejo.
The company signed a 10-year lease for 29,829 square feet of space at 27101 Puerta Real, which is owned by Mission Ridge Associates LLC.
Terms of the deal weren’t disclosed. Other space at the building is listed to have monthly rents of about $2.35 per square foot.
The latest deal is a pretty big expansion for Ensign Group, one of three publicly traded nursing home operators in Orange County.
The company counts more than 70 nursing home and assisted living facilities in California, Arizona, Texas, Washington, Utah, Idaho and Colorado Ensign Group went public in late 2007, raising $64 million in its initial public offering. The company had a recent a market value of more than $300 million.
The company has been steadily expanding its space at the site. It leased 20,200 square feet at the site before renewing.
Two years ago, it was taking up about 16,000 square feet of space there. The company’s previous lease, which expired in September, was set up to allow it to extend its current lease for two three-year terms.
Leland Bruce and Mitch Lundquist of Chicago-based Jones Lang LaSalle Inc.’s Irvine office represented Ensign Group in the lease. Scott Johnstone and Greg Puccinelli of Santa Ana-based Grubb & Ellis Co.’s Newport Beach office represented the landlord.
RESIDENTIAL
Two former executives at Miami-based Lennar Corp. who managed the builder’s Inland Empire land division during the boom years said their new business is ready to start buying distressed land.
Tom Banks and Jason Perrin are co-founders and principals of Greencrossing Real Estate Cos., a company that’s started up in Aliso Viejo, where much of Lennar’s day-to-day operations are run.
To date, much of the work at Greencrossing has focused on consulting land owners and financial institutions. Now, with properties beginning to move, the founders say they feel the time is right to re-enter the market.
