One of Orange County’s largest office complexes, Koll Center Irvine, has been temporarily pulled off the market by owner Cigna Investments, according to local investors once bidding for the site.
But sources expect Cigna to try to attract a large pension fund or institutional investor to buy at least a portion of the property before re-entering talks with local companies.
Koll Center Irvine includes four 11-story towers totaling 900,000 square feet, the Prego restaurant and Remicks banquet facility and the ground lease for the Irvine Marriott hotel. The property has entitlements to add another 200,000 square feet of space.
Cigna Investments owns Koll Center Irvine and bought the project’s ground lease from Parker Pension Trust last year. Cigna Investments, which is an arm of the Hartford, Conn.-based healthcare and insurance conglomerate, has been undergoing a reorganization. Management of much of its real estate holdings has been shifted in recent months.
The moves, along with indecision by Cigna managers about whether to sell part of Koll Center Irvine or unload it all, have left the center’s future in doubt.
Interestingly enough, one of the early bidders for the site was the Irvine Co. If local parties are given an opportunity to bid on the property again, the Orange County land baron could very well make another play for the Koll Center Irvine.
Meanwhile, longtime local real estate executive Tom Murphy has left his position as leasing director for Koll Center Irvine and joined Jones Lang LaSalle Inc., which he said offered him more job security. He will work with Jeff Ingham and Steve Zaccagnini in an expanded leasing and property management operation.
The Chicago-based real estate giant hasn’t been very active in the local market. But about six months ago it purchased Compass Management & Leasing of Atlanta, a unit of Lend Lease, and picked up an Irvine office and management contract on Lend Lease’s $300 million OC portfolio.
“They (Jones Lang LaSalle) really didn’t have a presence in Orange County before,” said Murphy. “But now they want to expand their Orange County office and upgrade their activity level in this market.”
That means besides becoming more aggressive in property management sectors, Jones Lang LaSalle wants to become a force locally in brokering, both for tenants and landlords.
“This was a more secure opportunity and enabled me to get out and do some tenant representative work to go with my leasing responsibilities,” said Murphy. n
