Orange County Business Journal

Crystal Cathedral Campus Could See Apartments

REAL ESTATE: Greenlaw bids $46M with lease deal for church Mark Mueller Sunday, June 5, 2011

The deal with Greenlaw is far from being finalized, according to sources familiar with the bankruptcy case.

Greenlaw signed a letter of intent to buy the property on May 23.

A higher bid could come in a court-overseen auction, sources said.

In a best-case scenario, Greenlaw’s deal could close by August.

Officials for the developer declined to comment on the prospects of the sale gaining bankruptcy court approval.

The deal would be among the highest-profile properties owned by Greenlaw, which also is a part owner of Costa Mesa’s Triangle Square shopping center, and has several local offices in its expanding portfolio.

Greenlaw has bought close to $200 million worth of commercial properties since the end of 2009, primarily office buildings.

Many of those buildings have been acquired in partnerships with two big private equity firms, New York-based Westbrook Partners LLC and Chicago’s Walton Street Capital LLC.

There’s no mention in court filings of any potential financial partners with Greenlaw in the Crystal Cathedral sale.

THE NEWS:

Greenlaw Partners bids $46 million for Crystal Cathedral Ministries 30-acre, seven-building campus

BACKGROUND:

The church filed for bankruptcy last October, listing more than $40 million in debts

WHAT’S AHEAD:

Deal would allow the church to lease back space, open possibility for Greenlaw to build apartments on the site

Other Greenlaw Deals

Notable deals Greenlaw has made of late include Irvine’s 2050 Main Street, a 13-story office tower built near the peak of the last real estate boom near John Wayne Airport.

The company and its partners paid close to $56 million for the then-largely empty building in late 2009, after the building’s developers went bankrupt.

Following a number of big leases that have brought its occupancy levels close to full, including a recent deal with Sunwest Bank, the 2050 Main building’s now likely worth close to $100 million, based on similar sales of late.

Greenlaw’s recent office deal in Orange appears to have given it the confidence to go ahead with the nearby Crystal Cathedral.

Near the end of 2010, Greenlaw paid about $11.5 million for 4000 Metropolitan, a four story office just off the Garden Grove (22) Freeway.

The 183,500-square-foot office reportedly traded hands for about $63 per square foot in a lender-driven sale, according to brokerage data from the Irvine office of Colliers International. Wells Fargo & Co. was reported to be the seller.

An affiliate of Los Angeles-based West Millennium Homes, which filed for bankruptcy in 2009, paid close to $38 million for the building in 2006.

The 4000 Metropolitan building was reported to be about a third leased at the time of its bank-overseen sale, according to brokerage data.

Following the recently struck 100,000-square-foot deal with the FBI and another 46,900-square-foot lease with Santa Ana-based T.D. Service Financial Corp., the building’s now said to be close to full.

T.D. Service, founded by Dale Dykema, helps lenders process paperwork for foreclosed homes.

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