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RREEF Adds Anaheim Hills Office to OC Portfolio

Anaheim Hills Office Plaza, one of the largest North Orange County offices built in the last real estate boom, has had another change in ownership.

An affiliate of New York-based RREEF Property Trust Inc. paid $18.5 million for the three-story, 73,892-square-foot office just off Weir Canyon Road near the Riverside (91) Freeway.

The sale works out to a price of about $250 per square foot for the fully leased office. The building has three tenants: Gateway One Lending & Finance, Raytheon Co. and Century 21 Real Estate.

A partnership between Newport Beach-based Realm Group LLC and Blue Vista Capital Management of Chicago sold the building, which they acquired out of foreclosure three years ago for about $14 million.

Realm Group is a joint venture between Realm Real Estate in Newport Beach and Irvine-based apartment investor Bascom Group LLC.

Paul Jones, Blake Bokosky, Bob Smith and Kevin Shannon of CBRE Group Inc.’s Institutional Properties Group represented the sellers in the transaction.

The 160 N. Riverview Drive building was developed in 2008 by Irvine-based Silver Oak Development LLC. It’s the largest speculative office built in Anaheim since 2003.

“The buyer saw this as an opportunity to purchase an asset with strong cash flow and quality tenants in the Orange County market, which continues to show signs of improvement,” CBRE’s Jones said.

Monthly rents at the building average about $2 per square foot. RREEF said in regulatory filings that it borrowed $14.7 million from an existing credit line to help finance the deal.

It’s the second acquisition in Orange County this year for RREEF, a unit of German investment giant Deutsche Asset & Wealth Management and long one of the area’s largest office investors.

In April, it paid $20.4 million for Tustin Executive Center, a 90,932-square-foot, four-story office building near the Costa Mesa (55) Freeway on 17th Street.

RREEF said it has hired JLL as property manager for the Anaheim office.

Vivante Loan

The developer and owner of Vivante on the Coast, an upscale, 185-unit senior housing community in Costa Mesa that opened last year, has gotten a new loan for the project.

Santa Ana-based Nexus Cos. recently received a $72 million loan for the property located less than a mile from Hoag Hospital in Newport Beach.

The three-year, 3.75% floating-rate loan was secured through a specialty finance company, according to officials with the Irvine office of Holliday Fenoglio Fowler L.P., whose James Fowler and Charles Halladay helped arrange the financing.

The amenity-laden project was developed at a cost of about $60 million, according to Nexus.

Batavia Sale

Redevelopment of a 25-acre industrial property in the city of Orange is off the books after its recent sale to the sole tenant.

Media, Pa.-based foam manufacturer FXI, which previously operated under the Foamex International Inc. name, this month said it bought 2060 N. Batavia St., a 250,000-square-foot manufacturing facility about a mile northeast of Angel Stadium.

Terms of the sale were not disclosed. FXI bought the property from an affiliate of Irvine-based developer Sares-Regis Group, which acquired the site in 2012 with an eye toward tearing down the existing building to make way for a 564,500-square-foot industrial warehouse.

Real estate sources estimated at the time of the 2012 sale that the building went for more than $30 million.

FXI said in a statement that its acquisition “assures customers, employees and the broader community of the company’s commitment to manufacturing in Southern California for many years to come.”

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Mark Mueller
Mark Mueller
Mark is the former Editor-in-Chief and current Community Editor 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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