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Stadium Towers Owner Sees Room for More

The owner of Stadium Towers Plaza, a 12-story office next to Angel Stadium of Anaheim, is in the early stages of planning to double down on the same site.

CIM Group LP, a Los Angeles-based investment group, this month filed a conceptual development plan with the city of Anaheim to build a second office next to its existing building at 2400 E. Katella.

The project, as currently envisioned, could run as large as 300,000 square feet and reach 15 stories.

The top two floors of the building would be designed as creative-office space—which typically includes open floor plans and other features intended to encourage collaborative work environments—according to initial plans filed with the city.

Time Frame, ‘Dialogue’

A time frame for the proposed project, which would include a new parking structure, has not been disclosed. The city is expected to review CIM Group’s conceptual development plan over the next month.

“CIM has initiated a dialogue with the city of Anaheim to explore, in concept, the potential for future development,” the company told the Business Journal in a statement.

Architecture firm Gensler, which has a Newport Beach office, is the architect for the project, according to city filings.

The land where the office project is proposed has been entitled for additional office development since the mid-1980s. The existing 12-story office, just west of the Orange (57) Freeway, was built in 1989.

It would likely take the city’s planning commission three to six months to review the project once the developer files a more formal application to develop the office, according to Mike Lyster, chief communications officer for the city.

CIM Group bought the existing Stadium Towers building—and the additional land that would host the new development—last year for a reported $60 million. It was sold by Bethesda, Md.-based CWCapital Asset Management LLC as part of a larger national portfolio sale of troubled real estate assets and loans.

The property was previously owned by Los Angeles-based MPG Office Trust Inc., which was Orange County’s second largest office landlord at the peak of the last real estate cycle.

MPG, previously known as Maguire Properties Inc., picked up the buildings in 2007 as part of its $2.9 billion buy of OC and L.A. offices from Equity Office Properties Trust. Maguire defaulted on loans tied to Stadium Towers in mid-2009.

The existing Stadium Towers building runs about 260,000 square feet and is 88% leased, according to market tracker CoStar.

BB&T Insurance Services and California United Bank each lease more than 40,000 square feet at the building, according to CoStar’s records.

Ticket company StubHub has an office at the building and its name atop it.

The last large office to be built in Anaheim was the new, 198,000-square-foot headquarters for Extron Electronics Inc., which opened in 2012.

It’s been seven years since a large, speculative office has been built in the city.

The CIM Group proposal is the latest sign of increased investor and developer confidence in Central Orange County’s improving office market, particularly in the area around Angel Stadium.

The class A office market in Central OC—which runs about 10 million square feet—had 33% vacancy rates at the nadir of the last recession.

Vacancy rates for those higher-end buildings run closer to 13% now.

Monthly rents for class A buildings in the market are now about $2.53 per square foot, up about 25% since the recession, according to recent data from Voit Real Estate Services.

Last month the local office of Dallas-based Lincoln Property Co. bought Stadium Gateway, a six-story office a few blocks from Stadium Towers, for about $68 million.

The deal for the 273,000-square-foot Stadium Gateway building is the largest office sale reported in Central OC so far this year.

Anaheim Corporate
Office Plaza

Lincoln Property also is handling the redevelopment of the Anaheim Corporate Office Plaza, a five-building business park on Orangewood Avenue next to the Santa Ana River.

The company is planning a $10 million makeover of the property, which totals about 300,000 square feet, into a creative-office project called Axis.

A 76,000-square-foot office development is also part of the proposed LTG Platinum Center mega-development proposed at the northeast corner of State College Boulevard and Orangewood Avenue.

Hong Kong-based LT Commercial Real Estate Ltd. is heading up that mixed-use project, which would be its flagship development in the U.S. and is expected to include condos, retail, a hotel, and other uses.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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