A five-story Garden Grove office building on the campus of the Crystal Cathedral has been put up for sale by the megachurch.
Crystal Cathedral Ministries, headed by TV minister Robert Schuller, has put a 136,968-square-foot office building it owns on the market, according to brokers with the Anaheim office of CB Richard Ellis Group Inc.
The building, at 13280 Chapman Ave., is next to the Crystal Cathedral, an Orange County landmark. The office shares parking with the cathedral, which was completed in 1980.
The price tag for the building, built in 1989, is $34 million, or about $248 per square foot.
The iconic Crystal Cathedral church building isn’t part of the sale.
The ministry says it wants to lease back the entire property for three years after the sale is completed, at a monthly rate of $1.59 per square foot, or about $2.6 million a year.
Alternatively, the buyer could opt to terminate the lease with six months notice, according to marketing literature for the office.
The property is a few blocks from UCI Medical Center in Orange so brokers are advertising the building as a possible site for medical tenants, if the office is converted for that use after the ministry leaves. More than $4 million of upgrades would be needed to make the office compatible for medical tenants.
The site, on a roughly 5-acre plot of land, is zoned for office, medical and educational uses.
Adding medical tenants to the office could generate monthly rents in the $2.40 per square foot range, according to CB Richard Ellis, which is marketing the property.
Comparable medical offices in the county the past two years have sold for an average price of nearly $470 per square foot. Traditional offices have sold nearer to $339 per square foot.
Crystal Cathedral Ministries, which is home to some 10,000 members and Schuller’s “Hour of Power” TV show, has used sales of OC real estate it owns to meet its financial goals in the past few years.
In 2005, it sold a 4-acre plot of land in Anaheim where it owned a warehouse to La Jolla-based Windstar Communities LLC, getting $12.2 million for the property.
Windstar used the land to build its Stadium Loft condominium project, the first for-sale housing project to be built in what’s now known as the Platinum Triangle.
Also in 2005, the ministry put up for sale nearly 60 acres off San Juan Capistrano land it owned, located next to the San Joaquin Hills (73) Toll Road near the intersection of the San Diego (I-5) Freeway.
Western Realco Go-Ahead
Executives with Newport Beach-based developer Western Realco say they’re moving ahead with a $40 million speculative industrial project in City of Commerce, despite the rough economy.
Construction recently began at Randolph Business Center, a 400,000-square-foot distribution facility just south of the Santa Ana (I-5) Freeway near the Long Beach (710) Freeway.
The building’s slab is complete and walls were scheduled to be erected around Christmastime, officials said. The project’s slated to be finished in May and is available for lease or sale as a whole or in parts.
The Los Angeles office of Cushman & Wakefield Inc. is handling marketing for the property, which was designed by Tustin-based Bastien and Associates Inc.
“Though we understand that there’s weakness in the overall market, the Midcities submarket and Commerce have historically had low vacancy rates along with rents that have held up while other Southland submarkets have suffered,” said Gary Edwards, Western Realco principal, in a statement.
Western Realco was formed in the early 1970s and has developed more than 100 buildings to date, totaling nearly 15 million square feet.
College Lease
Costa Mesa-based CNI Vocational College, an educator that specializes in healthcare training, has tripled the size of its Orange location.
CNI signed a lease to expand from 12,000 square feet to 35,462 square feet in a single-story building at the Town & Country Business Park, owned by Irvine-based landlord Colton Cos.
Surgical technology and vocational nursing are taught at the Orange location, at 986 Town and Country Road, next to Westfield MainPlace mall. Monthly rents at the business park are listed at about $1.80 per square foot.
CNI was founded in 1994. Its main campus is next to South Coast Plaza.
UGL Equis’ Drew Netherton represented CNI in the long-term lease. Colton was represented by Jon McClintock.
