Houston-based Hines Interests LP has completed the purchase of land in Brea just off the Orange (57) Freeway where an office complex it recently bought is located.
An affiliate of the real estate investor paid about $25 million for the 17.4 acres of net leased land near the Brea Mall on South State College Boulevard.
The land was ground leased to prior owners of the two-building Brea Corporate Place office complex since that project’s development in 1984.
It was sold by the Brea-Olinda Unified School District. The property had been listed for sale earlier this year with a minimum price of $20 million.
Hines partnered with Los Angeles-based private equity firm Oaktree Capital Management LP about three months ago to buy Brea Corporate Place, along with four other nearby offices, for a reported $80 million.
That 560,000-square-foot deal worked out to a price of $142 per square foot.
The six offices that Hines and Oaktree bought are being rebranded under the Brea Place name.
The purchase of the underlying land from the school district gives Hines more flexibility in any potential development at the site.
The developer is said to be considering building apartments around the undeveloped portion of the office complex, within walking distance of the Brea Mall.
Turner Purchase
Newport Beach-based Turner Real Estate Investments has picked up a multibuilding industrial park in the Anaheim Canyon business district.
The company, one of the area’s larger developers since its founding in 1979, recently completed the purchase of Blue Gum Industrial Park, a seven-building business park in Anaheim that totals about 176,500 square feet.
CoStar Group Inc. records put the purchase price for the deal at nearly $19.4 million, or about $110 per square foot. Property records list a Florida-based investor as the seller. The deal was brokered by Marcus & Millichap’s Michael Lawrence.
The property is near the intersection of the Orange and Riverside (91) freeways and along the Placentia-Anaheim city line.
The Blue Gum property was more than 90% leased at the time of sale; the largest of the seven buildings runs about 44,000 square feet, the smallest 14,000.
Individual buildings at the property, one of the largest local purchases for Turner in the past few years, are expected to be converted into for-sale units.
It’s next to Melrose Industrial Park, an 11-building park in Placentia that was bought by Irvine-based CapRock Partners LLC in 2012. That complex sold for nearly $12.9 million, or $142 per square foot, according to CoStar data.
KBS Profits
A 2011 investment in a West Palm Beach, Fla., office tower has paid off for Newport Beach-based KBS Realty Advisors.
An affiliate of the active real estate investor sold the CityPlace Tower last month. The 18-story office building in West Palm Beach is about 296,000 square feet. It sold for $150 million, or about $507 per square foot.
The buyer was identified by local publications as W. R. Berkley Corp., a Connecticut-based investor making its first purchase in Florida.
KBS Realty said it made $19 million on the sale, factoring in its $126.5 million purchase of the building in 2011, plus capital expenditures, lease commissions and other costs.
The deal adds to a string of recent profitable sales for the company’s KBS Real Estate Investment Trust II, which has focused on acquiring higher-end properties across the country.
Other recent sales for the nontraded REIT include the 300 N. LaSalle skyscraper in Chicago and a 17-story office tower in Houston. Those two deals, which were bought by Newport Beach-based Irvine Company and a venture of Newport Beach’s Pacific Investment Management Co. in separate deals, resulted in a combined profit of about $216 million for KBS.
