The Irvine Company’s twin 15-story towers going up in the Irvine Spectrum are only half of the development story in the area.
Construction is starting on more than 1 million square feet of office and light industrial space in the area near the intersection of the San Diego (I-405) and Santa Ana (I-5) freeways.
The projects include the towers geared to big tenants and smaller one- and two-story buildings for sale aimed at companies with more modest needs.
Down the street from the Irvine Spectrum Center mall, work is starting on 20-40 Pacifica, the name for the two office towers being built for the Irvine Co.
The two towers will add about 630,000 square feet of office space to the area. The first tower is set to be finished in late 2007.
On the west side of the San Diego (I-405) Freeway along Irvine Center Drive, two projects targeting a different audience are making headway.
The Irvine Co. previously sold the land to developers of small buildings, with Irvine-based Bacchus Development Corp. and Newport Beach-based Koll Co. buying most of the parcels.
Both companies have close ties to the Irvine Co.
Don Koll of Koll Co. is a longtime friend and associate of Irvine Co. owner Donald Bren. Bacchus is owned by Steven Bren, Donald’s son.
Koll Co. plans to start work next month on Koll Center 2, a 49-building project that includes office and industrial space.
Koll Co.’s first office-industrial project at the site was a 27-building development built on speculation,meaning the units weren’t sold or leased when built. Koll Center was completed last fall, with all units sold.
LPA Inc. of Irvine is designing the company’s latest Koll Center project, which should be finished in about a year.
Koll Center 2 will total 180,000 square feet, with individual buildings as large as 18,000 square feet. Prices are about $270 per square foot for the one- and two-story buildings.
The project is 80% sold. The units have been on the market since November, said Michael Hartel, senior vice president for the Irvine office of Colliers International Inc. Colliers is marketing the site.
Interior designers, advertisement shops and real estate development companies are among the buyers.
Hartel said demand for Koll Center 2 is a product of its location along the freeways, high lease rates for traditional office and warehouse space, and the lack of similar buildings in OC.
Down the way on Irvine Center Drive, Bacchus has begun construction on the latest of its four Spectrum projects, called Bacchus Office Park.
The 39-building property is set to have 79 units for sale. The biggest units will be about 20,000 square feet. Properties at the 22-acre site should start being completed by November. Bacchus Office Park is about 275,000 square feet in total.
The office park project is about 85% sold out, said Jeffrey John Bitetti, executive vice president for Bacchus.
“We’re focused on giving people the opportunity to work in the Spectrum area, along with living and spending,” Bitetti said.
The office park comes on the heels of a similar Bacchus development on a different parcel at the Spectrum. That site, called Brenexus Office Edition, is a 31-building, 54-unit project. It recently was completed and now is sold out.
Brenexus Office Edition has a total of about 265,000 square feet.
The Bacchus complexes are geared more to high-end office buyers than industrial users. The two-story buildings have steel frames and taller glass windows than is typical in small buildings.
Prices reflect the differences. Online prices being quoted for Bacchus properties run near $450 per square foot, though that price includes some utilities.
High-end small buildings for sale are seeing brisk sales across the Irvine area.
The law firm of Kimball, Tirey & St. John recently bought a free-standing, single-story building in Irvine, with plans to move from Newport Beach in June.
The 6,933-square-foot building went for $2.5 million, or $361 per square foot.
“We sold this property within 60 days of listing it, with multiple offers at or near the asking price,” said Oliver Fleener of Grubb & Ellis Co.’s Newport Beach office. It represented the seller, 5510-D Trabuco LLC, in the deal.
“The small building for sale market still is very strong,” Fleener said.
