San Diego-based Cypress Office Properties Inc., an upstart investor targeting properties in Southern California and Arizona, has picked up an Anaheim office complex at one of the lower prices seen of late for a midsized building.
Cypress Office paid a special servicer $5.1 million for the 100,000-square-foot Orangethorpe Corporate Plaza, a two-building complex near the Riverside (91) Freeway at the southwest corner of Orangethorpe Avenue and Raymond Avenue.
The company, which was founded about two years ago, took possession of the property through a deed in lieu with the previous ownership.
The building’s prior owner and special servicer were not disclosed by the buyers. Costar Group Inc. reports that the building previously belonged to KF Partners of Los Angeles.
More deals are likely for Cypress Office, according to Principal Mark Wayne. The company is on the lookout for other office and industrial buildings in the $5 million-to-$50 million range in Orange County, San Diego and Phoenix.
The Orangethorpe purchase falls on the low end of that scale. At $51 per square foot, it’s among the cheaper prices seen for midsized area offices lately.
The complex is only 15% leased and needs some repairs.
Plans are under way to renovate the atrium-style property, according to Cypress officials. Its previous owners hadn’t invested much in the building in recent years.
CB Richard Ellis Group Inc.’s Paul Jones and Louay Alsadek represented Cypress Office in the buy, which was an off-market deal.
Justin Hill, Tom Abel and Rick Warner, also brokers with CB Richard Ellis, will handle leasing for the two buildings on behalf of Cypress Office.
The company expects to own the building for between one and five years, according to Wayne.
Industrial Closeout
Irvine’s Sares-Regis Group Inc. has sold out its Canyon Point industrial project in Anaheim, the first speculative industrial development seen in the county in the past few years.
California Manufacturing Inc., a maker of aerospace products, bought the third and final building at Canyon Point last month for $4.3 million, according to the developer.
The 31,744-square-foot facility, near Miraloma Avenue at 1290 Miller St. in Anaheim, traded hands for about $135 per square foot.
California Manufacturing is moving to Anaheim from a smaller building in Orange.
Sares-Regis sold the other two buildings at the 120,000-square-foot Canyon Point last year to a pair of business owners for a combined $11.9 million, which also works out to about $135 per square foot.
The developer paid about $4 million for the land in 2009. Anaheim-based Pacific Sunwear of California Inc., which has its headquarters next to the site, was the seller.
Sares-Regis built the project last year on a speculative basis, the first industrial development in that part of Anaheim in several years.
The area around Miraloma Avenue is expected to see more industrial development later this year by the local office of Sacramento-based Panattoni Development Co., which has plans for as much as 900,000 square feet of buildings in the works.
Sares-Regis also is considering another speculative development just over the county line in Santa Fe Springs, according to brokers.
The company is nearing a deal for the land in a project that would total more than 300,000 square feet, brokers said. That project could begin in the next year if the sale goes through.
Sares-Regis was represented in the Miller Street sale by Brad Bierbaum in the Anaheim office of CB Richard Ellis.
California Manufacturing was represented by David Williams at Lee & Associates’ Anaheim office.
Brea Sale
A midsized shopping center in Brea has traded hands for $14.5 million.
Westwood Financial Corp. in L.A. said it sold the Brea Center, a 56,945-square-foot center at Brea Boulevard and Central Avenue, to San Diego-based Gerrity Atlantic Retail Partners LLC.
The center is 89% leased and sold for about $255 per square foot. Tenants include a Vons grocery store, Round Table Pizza, Fullerton Community Bank, and Shark Sushi restaurant.
Gerrity Atlantic was started earlier this year by San Diego-based developer William Gerrity.
Westwood Financial, which owned the property for about 20 years and counts a portfolio of more than 100 shopping centers, said the sale was part of strategy to invest more in other markets, such as Georgia, Florida and the Carolinas.
