The price keeps going up.
Stadium Gateway, a six-story office building next to Angel Stadium of Anaheim, is being sold for $71 million to Macquarie Office Trust, a unit of Australia’s Macquarie Bank Ltd., according to the company.
Back in 2003, I wrote here that Principal Real Estate Investors, an investment adviser and affiliate of Iowa’s Principal Financial Group Inc., bought Stadium Gateway for $52.5 million.
The recent sales price is a 35% gain in two years or so. The sales price per square foot is about $260.
The 273,000-square-foot building, built in 2001, is full, according to Macquarie. The main tenant is New Horizons Worldwide Inc., an operator of computer training schools that’s based there.
The average lease is five years. The company said it’s set to get a 7.3% yield on the building.
In a release earlier this month, Macquarie described Orange County as “one of the most favored U.S. markets.” It also said it sold off real estate stakes in Dallas.
Larger class A office buildings have been selling for a premium lately.
Investors see limited future competition, since it costs more to put up an office building here these days with land and materials expenses way up. Also, housing developers are gobbling lots of commercial sites for condominiums and apartments.
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Central Park site: 1,380 condos planned |
Last year Knobbe, Martens, Olson & Bear LLP paid about $105 million for its headquarters building at 2040 Main St. in Irvine, or about $315 to $325 per square foot.
In another big deal last year, Los Angeles-based Maguire Office Properties Trust paid $475 million for Washington Mutual Inc.’s four-building campus in Irvine.
After factoring out the value of land and extra parking included in the deal, the sale price was $291 per square foot for the existing buildings, according to the company.
During the 1980s boom years, Japanese buyers were paying north of $300 per square foot for prime buildings in OC.
The bulldozers across the street were a clue. But I still appreciate getting a press release saying Miami-based Lennar Corp. has started construction on Central Park West in Irvine.
The Aliso Viejo office of Lennar has demolished all the buildings that once were Parker Hannifin Corp.’s aerospace campus. The site at Jamboree Road and Michelson Drive, across from the Business Journal, now is a 42-acre square of dirt.
Lennar is developing the property with spinoff LNR Property Corp. and Highgate Holdings, an Irving, Texas-based real estate investor.
The press release provided an update on the homebuilder’s plans, which now include two condominium high-rises and a total of 1,380 condos. I previously wrote the builder planned one tower.
That brings the total of high-rises planned along Jamboree up to 11.
Vancouver, British Columbia-based Bosa Development Corp. is far along on two towers and plans up to four more at Park Place. The Irvine office of Phoenix-based Opus West Corp. has started prep work on two towers and plans one more with partner Geoffrey H. Edmonds & Associates of Scottsdale.
The first phase of homes at Central Park West should debut next year. Lennar is set to build some of the homes and sell lots to other builders.
The project’s name comes from its design, which surrounds a major park, & #341; la Manhattan.
In addition to the two high-rises, plans include “an eclectic array of brownstones, luxury flats, townhomes and lofts,” the release states.
There also should be several parks, an amphitheater, an 8,500-square-foot private clubhouse, a shopping center, a four-story office building of 90,000 square feet and a parking structure.
Lennar has kept more than 150 trees on the site, of which 82 will be replanted throughout the project’s streets and walkways.
Golf Out at Tustin
As someone who recently took up golf,and can’t get enough of it,I was sorry to read the Orange County Report newsletter last month, which said plans have been scuttled for a golf course at the former Tustin Marine base.
Development partners Centex Corp. of Dallas and Walnut-based J.F. Shea Co. have convinced city officials OC already has too much golf, the newsletter states. High-end courses in particular are too abundant.
A spokeswoman for the developers said the city didn’t allocate enough acres to do a bang-up job on a golf course.
The decision raises questions about El Toro, where 27 holes are planned in addition to the existing 18-hole course.
