Mission Viejo’s Kaleidoscope shopping center is for sale.
Brokers with the Los Angeles and Newport Beach offices of HFF LP have the listing for the distinctive 245,000-square-foot retail and entertainment center, which sits alongside the San Diego (5) Freeway on Crown Valley Parkway.
An asking price wasn’t disclosed in HFF’s marketing materials for the property. Comparable urban retail centers in Southern California trade from around $400 to over $700 per square foot, HFF said.
A deal made near the low end of that range would give Kaleidoscope a value approaching $100 million.
The center is owned by Westport Capital Partners LLC of Wilton, Conn., which paid a reported $22 million in 2010 for what was a financially distressed property.
The site was about 60% occupied at that time; it’s now 82.4% leased, HFF’s marketing materials show.
An LA Fitness and Edwards Theaters are the two largest tenants, each at more than 40,000 square feet. Edwards recently completed a 10-year lease extension for its space.
Union Market, a multitenant food hall of more than 27,000 square feet, opened last year.
The center was built in 1998 for a reported $60 million, and was previously positioned as a traditional shopping center.
Westport has put millions into renovations since 2010—including new covered escalators, a “modern color palette” for the exterior, and new signage and glass accents—transitioning it into more of an entertainment destination.
It’s a strategy similar to one executed at The Triangle, a 190,000-square-foot entertainment and dining site in Costa Mesa that’s also for sale, and at GardenWalk, a 460,000-square-foot outdoor center in Anaheim that isn’t believed to be on the block.
According to the city of Mission Viejo, Kaleidoscope generated $15.4 million in taxable sales in 2015.
Filling Up
Expect to get good cellphone reception at 200 Spectrum Center, Orange County’s tallest office building.
Wireless infrastructure firm Crown Castle International Corp., a Houston-based real estate investment trust that’s one of the country’s largest operators of cellphone towers, recently expanded its presence at the 21-story Irvine Company tower, which opened for tenants about a year ago.
Crown Castle took a third floor for 22,000 square feet of additional space. It now occupies more than 66,000 square feet at the high-rise, making it the second largest tenant behind Mazda North America Operations, which leases 102,000 square feet for its local headquarters.
The building is about 93% leased, according to Irvine Co. Its only full floor not spoken for is the top one; Irvine Co. is asking monthly rent of $5.25 per square foot for the space, its website said.
A sister tower at 400 Spectrum Center is close to opening.
Both properties provide free Wi-Fi at open-air gathering places, among other amenities.
Tuxedo Time
The Southern California chapter of commercial real estate development group NAIOP is adding a wrinkle to its annual “Night at the Fights,” which takes place May 11.
The black-tie shindig is the biggest annual networking event for OC’s commercial real estate industry.
This year’s edition is themed “Hollywood’s Golden Age” and will again include several boxing and MMA matches—as well as a match between two area commercial real estate executives: Andrew Irvine, a broker with Marcus & Millichap, and Chuck Campbell, a broker with Lee & Associates.
The event takes place at Hotel Irvine. The nearest medical facility is Hoag Hospital Irvine, about five miles away.
The commercial real estate pros “will receive training and go through official weigh-in and certification prior to their bout,” according to NAIOP.
