Orange County Business Journal

Santa Ana Offices Could Bring $65 Million for Seller

Tustin Centre Complex Features 10-Story Tower Mark Mueller Sunday, September 29, 2013
Tustin Centre II: leased to nonprofit

Tustin Centre II: leased to nonprofit

The two buildings that make up the nearly 280,000-square-foot Tustin Centre office complex are up for sale in separate deals that could fetch close to a combined $65 million.

The Santa Ana office complex, which sits on North Tustin Avenue overlooking the Costa Mesa (55) Freeway, has a 10-story office tower built in the early 1990s, as well as a four-story building that opened in 2009.

New York-based investment giant Blackrock Inc., which owns both buildings, put them up for sale in the past few weeks.

The larger 200,000-square-foot office held the headquarters of Grubb & Ellis Co. when the brokerage was based in Santa Ana. The tower currently is about 70% leased, according to marketing materials.

That building is going to market without an asking price but is expected to sell for more than $200 per square foot, or $40 million, according to brokers familiar with the property.

The smaller building, one of the few local offices built during the thick of the last recession, has a $25.5 million asking price, or $310 per square foot. It’s fully leased under a long-term deal to Regional Center of Orange County Inc., a nonprofit that provides services and support for people with developmental disabilities.

The buildings could be bought as a pair. The sellers, however, are offering them separately due to the different profile of buyers who would likely be attracted to them because of their respective tenant situation.

Brokers from the local offices of CBRE Group Inc. and Newmark Grubb Knight Frank have the listing for the buildings.

Santa Clara Additions

Newport Beach-based Irvine Company added another large office complex to its quickly expanding Silicon Valley portfolio.

The company recently completed the purchase of Augustine Business Park in Santa Clara. The three-building complex, which was sold by Los Angeles-based Arden Realty, is just off the 101 Freeway and is about 188,000 square feet.

The property traded hands for about $55 million, or $292 per square foot, according to the Silicon Valley Business Journal, which first reported the sale.

It’s one of several office purchases Irvine Co. recently made in the Santa Clara area. Last year it bought a nearby 32-acre business park that’s slated to be redeveloped into a 1.2 million-square-foot office campus. It’s also nearing completion of a 900,000-square-foot complex elsewhere in the city.

Irvine Co. officials said they have no immediate plans to redevelop the former Arden office park, which sits on 12 acres.

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