Two heavily courted high-tech companies looking for new offices in Orange County may end up moving in together.
Houston-based BMC Software and Epoch Networks, in need of a combined 100,000-plus square feet of space, have entered into separate negotiations to lease portions of the 12-story tower that used to be Unocal’s home at South Coast Metro Center in Costa Mesa.
“That would be a pretty good tenant roster,” said Jay Carnahan, a principal of CMG Real Estate in Newport Beach. “Those are two very sought-after tenants.”
The 11-year-old building, at 555 Anton Blvd., had been empty for much of the past year after Unocal moved in 1998. But with new German investors, and Denver-based Amstar Group Ltd. as the property’s asset manager, two tenants were signed earlier this year.
Tickets.com and J.D. Edwards World Solutions Co., a Denver-based software company, each took about 40,000 square feet in the building.
With BMC and Epoch in the fold, the tower would be 83% filled.
Boost for Metro Center
A move by both into the old Unocal building would also give a boost to South Coast Metro Center, a 1.4 million-square-foot office and retail development that is set to become the new headquarters of Experian Inc.
Earlier this month, the credit reporting company acquired ground lease rights to develop 19 acres at the center from McCarthy Cook & Co. for $24.4 million. Experian plans to build a campus-style complex and move its 1,500 workers from Orange to Costa Mesa by June 2002.
Besides Experian’s move, McCarthy Cook & Co. are developing several restaurants and retail sites at the 50-acre South Coast Metro Center.
“All of the people moving here is symbiotic,” said W. Toliver Morris, leasing director for South Coast Metro Center. “The amenities are going to help solidify all of South Coast Metro Center.”
Epoch executives pointed out that the development’s growth, which already includes a trio of high-rise towers of about 250,000 square feet apiece, was one of the main factors that attracted Epoch to the former Unocal building.
The other two towers are controlled by McCarthy Cook & Co. and bookend the 555 Anton Blvd. facility at the center.
“We’re excited about all of the amenities that are going to be available in the future to our 200 employees relocating to the new building,” said Rex Bell, vice president of Epoch. “And even now, they’ll be within walking distance to South Coast Plaza.”
Tech Features A Draw
Another reason drawing Epoch to 555 Anton Blvd. is the amount of high-tech features that its former owner designed the building to include.
“Unocal spent a tremendous amount of money on the infrastructure of the building, running fiber optics all throughout and creating a 5,000-square-foot data center,” said Bell. “So it’s a technology-rich facility.”
The company is currently at 18201 Von Karman Ave. It is planning to move into about 40,000 square feet at 555 Anton Blvd., which would be almost twice the size of its present offices.
Epoch began in 1995 as a small Orange County-based Internet service provider which also offered web hosting for business clients. Now it serves about 35,000 dial-up and high-speed, dedicated-access business customers throughout the world, according to Bell.
Epoch hasn’t yet signed final paperwork for a five-year lease that would take up two floors at the former Unocal building. “But we’re pretty sure it’s going to work out,” said Bell.
But until the ink is dry on final contracts, caution local brokers, all bets on where the computer firms will land remain up in the air.
Hot Pursuit
Both companies have been heavily pursued by some of Orange County’s largest landlords. The Irvine Co. and Cigna Investments, interested in filling Jamboree Center and Koll Center Irvine, respectively, have been particularly hot on BMC’s trail in the past several months.
Officials with BMC Software, which markets software to assist network systems, described discussions for 70,000 square feet at 555 Anton Blvd. as preliminary.
But sources say that terms have been agreed upon and are awaiting approval from corporate brass in Houston.
BMC Software is interested in consolidating operations of its staff at 18551 Von Karman Ave. in Irvine with those of recently acquired New Dimension Software Ltd., an Israel-based software developer that has been operating its North American headquarters in two Irvine offices at 19100 Von Karman Ave. and 2151 Michelson Drive.
The three separate operations total about 150 people and 28,000 square feet.
BMC is negotiating for enough space at the old Unocal building to provide room for further expansion, according to those familiar with the deal.
The move would probably not affect Boole & Babbage’s El Segundo office, according to sources. The company, which is a distributor of New Dimension’s products, was also recently acquired by BMC. n
