By A Taiwanese investor has paid $36.2 million for the roughly 12-acre, 164,000-square-foot Stadium Crossings office and retail complex across from Edison International Field in Anaheim.
The price, at $220 per square foot, is one of the highest ever paid for a mixed-use center in Orange County.
Crown Realty & Development Inc., which developed the complex, decided to sell the property to Shin Yen International Pty. Ltd., an Australia-based unit of Taiwan’s Hong Yang Group, in order to focus on other opportunities, said Robert Flaxman, president of the Newport Beach-based company.
Stadium Crossings sits at the corner of State College Boulevard and Katella Avenue in Anaheim, across from Edison Field and a few miles from Disneyland. The complex consists of:
n A 104,000-square-foot, four-story office building
n A 7,500-square-foot strip of retail shops
n A 5,000-square-foot Denny’s and a 3,000-square-foot Carl’s Jr. restaurant
n A 7,000-square-foot Community Bank
n A 36,500-square-foot Spectrum Health Club
A 140-room Marriott Town Place Suites hotel is part of the project but wasn’t included in the sale since the land was earlier sold to the hotel’s owner.
With long-term tenants in place and the retail and commercial space at Stadium Crossings fully leased, the timing seemed right to sell, Flaxman said.
Major tenants include Hewlett Packard Co., which signed a 10-year lease for 60,000 square feet and moved its regional office from Fullerton to occupy a portion of the second floor and the entire third and fourth floors. Another is CB Richard Ellis, which occupies 26,000 square feet and the whole ground floor. Engineering firm Willdan also is a tenant, occupying a portion of the second floor.
“We have long-term leases and the rents were all fixed,” Flaxman said. “There is real upside in the deal from rents, but it’s not like we had the opportunity to get a big pop from leasing vacant space or anything like that.”
Crown Realty bought the vacant lot in 1996 after Barclay’s Bank had foreclosed it. The company then developed the complex and has overseen the leasing, which was handled by CB Richard Ellis. Rents in the complex average $2.25 per square foot, Flaxman said.
“We were in it for four years, and it was a good amount of time,” he said. “It was a home run and we’re ready to move on.”
Flaxman has identified his next target: The company is in escrow on a West Los Angeles office project that has 300,000 square feet of existing space and is entitled for another 300,000. Flaxman declined to disclose a price on the deal, which is scheduled to close escrow Aug. 10 and is being purchased from Legacy Partners.
Additionally, Crown Realty continues to scour Southern California for additional opportunities.
“We’re developers, so we’re looking for opportunities to create value,” he said. “We’re not afraid to take on entitlement risk, development risk and lease-up risk.”
Robert “Bob” Smith of CB Richard Ellis’ Newport Beach office and Rick Warner of the firm’s Anaheim office represented Crown Realty, while Charles Huang of CB Richard Ellis’ Ontario office represented the buyer. n
