An unidentified buyer has been chosen to purchase one of Orange County’s most sought-after properties.
Bob Smith, a broker with CB Richard Ellis, said a buyer has been chosen to acquire the Union Bank Square complex of office buildings in Orange, one of the biggest portfolios of buildings to come on the market in Orange County this year. The property, consisting of 384,940 square feet of office space, is under contract, with the buyer conducting due diligence. Escrow is expected to be opened soon, with completion of the sale anticipated before year’s end, Smith said.
Smith declined to name the buyer or the price paid for the property, which consists of buildings at 500 S. Main, 600 S. Main, 530 S. Main, 550 S. Main and 1518 W. La Veta Ave. in Orange. The complex includes two 12-story buildings, a six-story building and two one-story buildings, one of which is an annex attached to the parking structure.
Real estate sources said the complex of buildings fetched in excess of $40 million. The seller is 500 S. Main Associates.
More than 16 bidders competed for the portfolio, popular because of the tightening vacancy rate in the Central County office market as well as its location immediately adjacent to the MainPlace/Santa Ana mall.
“It was very sought-after,” Smith said.
While its location was an obvious draw, many investors viewed the Union Bank Square buildings as an ideally positioned value-added play. The complex is about 85% occupied, and most of the tenants are paying below market rents, which will allow the new ownership to increase cash flow significantly as leases expire, Smith said. n
