The Irvine office complex that holds the headquarters of Taco Bell Corp. is up for sale, again.
Torrance-based Transpacific Development Co., which bought the two-building Irvine Spectrum complex last year, has listed the 270,000-square-foot site for sale, according to brokers with Los Angeles-based CB Richard Ellis Group Inc.
The buildings—previously the West Coast headquarters of Ford Motor Co.—are expected to trade hands for more than $90 million, according to real estate watchers. A listing price for the buildings hasn’t been disclosed.
If the expected price is met, it would be a sizeable increase in the property’s value in less than 18 months.
Prior Sale
Transpacific paid a reported $73 million for the buildings in June 2009.
At the time of the deal—amid a period when financing for commercial real estate was scarce—it was the largest office sale seen in Southern California in 2009.
It ended up being Orange County’s second most expensive office deal of last year, after the $153 million sale of The Michelson, a newly built high-rise at Irvine’s Park Place campus.
At the time of the 2009 acquisition of the Taco Bell complex, Transpacific officials described themselves as “long-term investors.” Now they appear set to take some short-term profits on the buildings.
Transpacific paid cash in the 2009 buy, which worked out to about $270 per square foot.
Market watchers now expect the building to sell for some $350 per square foot, which would translate to a nearly $95 million price tag.
If completed at the price Transpacific’s looking for, the deal would be a telling sign that the market for local commercial properties is on the upswing—at least for full buildings with good tenants and no pressing debt issues.
“Well located, class A core properties with long-term income streams are very attractive to both debt and equity (investors) currently,” said Kevin Shannon, CB Richard Ellis vice chairman and part of the brokerage team marketing the property.
The priciest local office sale so far this year—Irvine’s 2211 Michelson tower near John Wayne Airport—fits that bill. It sold early this summer for $103 million.
That newly built, 12-story building, which counts environmentally friendly design features and is largely full, sold for about $380 per square foot.
Transpacific’s buildings share some similarities with 2211 Michelson. The Spectrum buildings were one of the first “green” office projects built in the county and are fully leased through 2020.
Taco Bell takes up the larger of the two buildings, a 181,482-square-foot, five-story building at 1 Glen Bell Way, which sits next to the Santa Ana (I-5) Freeway.
It moved into the space, which holds room for about 600 employees, at the start of the year. Taco Bell had been in an Irvine high-rise closer to John Wayne Airport.
Ford
Ford, which has dramatically scaled back local operations in recent years, continues to take all of 3 Glen Bell Way, an 88,578-square-foot building. Ford’s Western headquarters staff and a design group are housed there.
The automaker had the buildings built in 2001 at a cost of about $68 million.
The buildings previously were known as One and Three Premier Place, for Ford Motor Co.’s former Premier Automotive Group of European brands.
In the past three years, Ford sold off its European brands, cutting its need for space in Irvine.
When Taco Bell moved in, the complex’s street and buildings were renamed in honor of Glen Bell, Taco Bell’s founder.
In 1962, Bell opened the first Taco Bell restaurant in Downey.
Taco Bell, a unit of Louisville, Ky.-based Yum Brands Inc., is the largest restaurant chain operator based in OC.
The company isn’t believed to be a likely bidder for the Irvine buildings.
“The sale of the building at One Glen Bell Way will not affect our lease and we look forward to conducting business at this location for the next 10 years,” a Taco Bell spokesman said.
