Sares Regis Starts Work on Irvine Luxury Complex
Smaller Industrial Deals Still Swift; Studley Handles Sybron’s Ormco Expansion
REAL ESTATE
by Daniel D. Williams
Construction on Sares Regis Group’s $134 million upscale Watermarke Luxury Apartment Homes complex in Irvine has begun.
Irvine-based Sares Regis acquired the 10.84 acres, at Carlson Avenue at Campus Drive, from Prudential Insurance Company of America. Chicago-based Equity Residential Properties Trust is Sares Regis’ financial partner in the project. Bank of America Corp., Guaranty Federal Bank and KeyCorp are providing the lending.
The apartments carry an average development cost of $250,000.
Sares Regis is betting the Watermarke will fill a niche in OC’s apartment market, where demand outstrips supply.
“In Orange County, we’ve been undersupplied for ages,” said Geoffrey Stack, managing director of Sares Regis. “Last year there were about 2,000 permits issued and the demand was twice that.”
The 548 apartments and town homes range from 620-square-foot studios to 1,500-square-foot, three-bedroom units.
Architect Kaufman Meeks & Partners Co. of Newport Beach is designing a northern European style for the apartment community, while the town homes will have a touch of New York brownstones.
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Though cracks are showing in OC’s industrial sector (see special report, page 17), activity continues in the sector, particularly with buildings 50,000 square feet or less. In recent weeks, Voit Commercial Brokerage’s Irvine and Anaheim Metro offices closed two industrial sales.
In the first transaction, the Buttermore Family Trust paid $2.9 million for a 35,265-square-foot industrial building at 620 Santiago St. in the Santa Ana Business Center. Pool Supply of Orange County is set to occupy the building.
“Seven of the nine buildings located at Santa Ana Business Center were sold prior to the center’s completion in January of this year,” said Voit’s Gregory Ozimec, who is representing Burke Santa Ana Ventures LLC.
Michael Hefner of Voit’s Anaheim Metro office, Greg Ozimec of Voit’s Irvine office and Tyler Pollock of Burke Real Estate Group represented Burke Santa Ana Ventures. Don Nourse of CB Richard Ellis Services Inc. represented the Buttermore trust.
In the second deal, Hince Family Trust sold an 18,125-square-foot industrial building at 11132 Winners Circle in Los Alamitos to Winners Circle Investments LLC. Mike Bouma of Voit’s Anaheim Metro office represented the Hince trust in the $1.6 million transaction.
Studley Reps Ormco Expansion
The OC office of Julien J. Studley Inc. represented Ormco Corp., a unit of Orange-based Sybron Dental Specialties Inc., in the expansion of its offices and production facilities in San Dimas.
Ormco signed a 10-year lease for a 30,000-square-foot flex-tech building at 305 S. Acacia St. The deal brings Ormco’s San Dimas operations to four buildings, totaling 100,000 square feet. Ormco makes a variety of orthodontic products. The company plans to use the new facility for office and service functions, along with light assembly and manufacturing.
Shane Wilder in Studley’s OC office represented Ormco in the $2.3 million deal. Randy Lockhart of Grubb & Ellis Co. represented the landlord, San Dimas Partners LLC
Deals:
San Francisco-based pension fund advisor McMorgan & Co. paid $18.75 million for the seven-story, 86,707-square-foot office building at 1500 Quail St. in Newport Beach. Northwestern Mutual Life Insurance Co. is the building’s major tenant, leasing 20% of the available space. George and Steve Economos of the Newport Beach office of NAI Capital Commercial represented the tenant. Bryon Ward and Kevin Shannon, of Grubb & Ellis represented the seller, Layton Belling & Associates, Newport Beach Newport Beach-based Master Development Corp. bought 14 acres in West Corona for $3.3 million. Master Development acquired the land from Questar Regulated Services Inc. and plans to start construction in June on the proposed West Corona Business Park. Nine freestanding industrial buildings totaling 230,000 square feet are to occupy the park. Walter Frome of Trammell Crow Co. represented both parties in the deal The Newport Beach office of Grubb & Ellis Co. brokered a deal for Anaheim Medical Center in Anaheim. First Anaheim Hills Properties LP, an Encino-based private investor, paid $6.3 million for the 43,614-square-foot medical office building, at 500 S. Anaheim Hills Road. The building is 92% occupied. Jeff Hanson and Gregg Herbert of Grubb & Ellis’ Newport Beach office represented the buyer in the transaction. John Pierce and John Griffin of Voit Commercial represented the seller, CT Realty Corp. of Newport Beach.
Bits and Pieces:
Newport Beach-based Bergstrom Capital Advisors is raising $10 million for an apartment complex in Reno, Nev. Bergstrom is raising the money for an unamed Newport Beach-based developer Irvine-based Jamboree Housing Corp. broke ground on Feb. 12 on Mendocino at Talega, a 124-unit apartment community in San Clemente. The 10-acre site was donated to Jamboree, an affordable housing developer, by Talega Associates LLC.
