Housing developers aren’t buying everything in the Platinum Triangle.
A unit of Southfield, Mich.-based Seligman & Associates Inc. earlier this month paid about $68 million for the 300,000-square-foot Anaheim Corporate Office Plaza.
Seth Meltzer, a principal with Seligman, said the company plans to keep the five-building office park as is, with a goal of getting it from 90% full now to 100% by the end of the year.
Miami-based Lennar Corp.’s ambitious housing plans in the triangle have dominated news of late. Anaheim’s optional mixed-use zoning, which makes Lennar’s proposal possible, doesn’t cover the entire triangle.
Anaheim wants some parts of the triangle to remain commercial.
Anaheim Corporate Office Plaza, wedged between Rampart Street and the Santa Ana River directly across from Angel Stadium of Anaheim, is in one of those areas set to stay commercial.
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Rendering of Bosa project: 176 condos planned |
Seligman’s Meltzer said all the planned housing is a good thing for area office space. Anaheim is “a forward thinking city,” he said.
Louis Tomaselli and Mitch Zehner of Voit Commercial Brokerage LP in Orange represented seller San Francisco-based RREEF Funds LLC.
RREEF sold the nearly 14-acre property for about $68 million, or $5 million an acre,about what housing developers are paying for Platinum Triangle land, Tomaselli said.
Tustin Industrial Buy
Irvine’s Real Estate Partners Inc. recently paid $9 million for an empty 75,600-square-foot industrial building in Tustin.
The investor plans to spend $3.6 million on renovations and transform the building into 72,000 square feet of class B office space.
John Collins of Voit Commercial Brokerage in Irvine is marketing the property for lease.
Collins is close to signing a tenant for 20,000 square feet and is in talks with another company to take the rest of the building, according to Real Estate Partners.
The 4.5-acre site is at 14402 Franklin Ave. near Walnut Avenue.
“The Tustin acquisition will allow REP to capitalize on the positive trending in the Orange County office market,” said Tom Thompson, president of Real Estate Partners, in a statement. “Orange County has the lowest vacancy factor nationwide for suburban office markets.” In the past three years, Real Estate Partners acquired more than $500 million in real estate nationwide, the company said.
Andy Friedman of Industrial Properties in Tustin represented the seller, a private investor.
Bosa Development Corp. has paid $40 million for 6.5 acres at Park Place in Irvine, with an eye to building four more condominium towers.
Nat Bosa, who heads the Vancouver, British Columbia-based developer, said he would have bought the land sooner but had to wait for Los Angeles-based seller Maguire Properties Inc. to subdivide it.
Bosa is nearly done with two Park Place condo towers, which sparked a round of high-rise homebuilding in Irvine and elsewhere.
The twin 18-story white towers should be done by year’s end, Bosa said.
In May, Bosa said he plans to break ground on the first of the next four towers and some town homes. He plans 176 condos.
In all, the land is entitled for 566 condos.
The next towers should be somewhat larger than the first two but “in the same mold,” Bosa said.
“I think they are going to be great looking towers,” he said.
Maguire Properties still holds land entitled for 850 condos or apartments at Park Place. The company said it plans to sell the land or develop it with a partner next year.
Western Closes First Fund
Irvine’s Western National Group has closed an investment fund to more investors after raising $50 million.
The fund, Western National Realty Advisors’ Fund I, is part of the company’s goal to expand from owning 13,000 apartments today to 25,000 in five to six years, said Chief Executive Michael Hayde, in a statement.
Since the fund’s creation last year, Western has bought the Monterra Apartments, a 133-unit complex in Anaheim, and a parcel of land in Northridge slated for development of 202 apartments.
“This fund consists of numerous individual investors who appreciate the Southern California apartment sector as an investment class and who are familiar with Western National,” Hayde said.
Prior to the creation of the fund, 42-year-old Western National acquired and developed apartments with cash raised from a number of different sources, the company said.
More funds could be in the offing.
“Our future capital strategy is to build off of the success of fund I,” Hayde said. “It may include a mix of individual and institutional investors in a fund structure.”
