Irvine-based LBA Realty is poised for a big investment in Nashville, Tenn., according to reports there.
The privately held investor is under contract to buy a 340,000-square-foot, three-building office complex next to Nashville International Airport on undisclosed terms, according to a report in the Tennessean, the main daily newspaper in the city.
Computer giant Dell Inc. is selling the campus. The Round Rock, Texas-based company plans to lease back about two-thirds of the space after the sale, which follows a series of recent job cuts in the area, according to the report.
The deal would be LBA’s only office holding in Tennessee, according to the company’s website.
It would also be the second notable deal in the past year between the company—known for its opportunistic purchases, such as buying the bulk of the Park Place office and retail campus in Irvine in the last downturn—and Dell.
LBA last year bought one of the two offices on Polaris Way in Aliso Viejo that Dell took over as part of its $2.4 billion buy in 2012 of locally based Quest Software Inc.
Dell plans to lease back the Aliso Viejo
property from LBA until late this year, according to brokerage data. Plans for the office after completion of the lease haven’t been disclosed.
Donut Drive
Dunkin’ Donuts’ expansion to the West Coast could soon roll in to Irvine.
Plans were recently filed with the city to build a Dunkin’ Donuts with a drive-thru at the roughly 57,000-square-foot Irvine Village Center at the intersection of Jeffrey Road and Irvine Center Drive.
A time frame for the project hadn’t been disclosed.
The popular East Coast-based doughnut and coffee chain opened its first location in Orange County this month, in Laguna Hills. The franchise is operated by Irvine-based franchise group Precision Hospitality & Development, one of several groups with plans to add locations in and around OC. The group said it plans to develop 10 Dunkin’ Donuts stores in South Orange County in coming years.
Intercontinental Buys
Boston-based investment adviser Intercontinental Real Estate Corp. has bought a pair of North OC assets—an Anaheim apartment complex and a corporate headquarters building in Brea—valued at more than $150 million combined.
The larger deal is for the Madison Park Apartments, a 768-unit rental complex at 2235 W. Broadway in Anaheim. The property is about 3 miles from Disneyland at the intersection of Broadway and Brookhurst Street.
It’s believed to be the largest North OC apartment property by unit count to trade hands in three years. Financial terms of the deal were undisclosed. The property was valued at about $140 million, or $182,000 per unit, a couple of years ago.
Intercontinental made the buy in a venture with San Diego-based MG Properties Group, a privately held real estate investor and operator.
MG Properties also owns the 402-unit Crystal View Apartments in Garden Grove, which it bought in 2010 for $52.5 million, according to brokerage data.
Brokerage records show the 12-building Anaheim complex was sold by Palo Alto-based Pacific Urban Residential. Institutional Property Advisors brokers Greg Harris and Kevin Green represented the seller in the deal, and the buyers represented themselves.
Intercontinental’s purchase in Brea put the corporate headquarters of PennySaver USA Publishing LLC in its portfolio.
Financial terms of the sale were undisclosed. Costar records put an estimated purchase price for the 101,420-square-foot building at $14 million, or $139 per square foot. Intercontinental said it bought the facility free and clear of existing debt.
A venture between Cohen Asset Management Inc. and American National Insurance Co. sold the building, which is leased to Pennysaver through 2028, according to marketing materials for the property.
The Brea building is next to Imperial Highway and has 52,069 square feet of offices and 49,351 square feet of industrial manufacturing, assembly and distribution space.
Pennysaver uses the building for its weekly PennySaver pamphlet, Web-based advertising systems and salesforce, according to brokerage HFF, whose Anthony Brent and Ryan Martin worked on the deal.
Intercontinental says it now owns and manages properties in a portfolio valued in excess of $3.7 billion.
