Two real estate owners behind much of the redevelopment now under way in the Lido Marina Village area of Newport Beach have traded one of the bigger office buildings there.
Newport Beach-based Burnham USA, one of the largest commercial property owners in the city, recently completed the purchase of 3700 Newport Blvd., according to property records. The office comprises approximately 17,000 square feet and sits at the entrance to the Balboa Peninsula.
The three-story, multitenant office was sold by an affiliate of San Jose-based DJM Capital Partners, which owned it for about four years, according to records.
DJM is redeveloping approximately 125,000 square feet of previously underused retail, office and warehouse space elsewhere in the area into a mix of trendy retail and restaurant space along the waterfront.
Financial terms of the sale weren’t immediately available.
The 3700 Newport building will get its own redevelopment under Burnham’s ownership, although it hasn’t announced plans, according to a real estate industry source.
It’s one of only a handful of office buildings on the Balboa Peninsula topping 15,000 square feet, and several of those buildings have been earmarked for conversion to residential, retail and other uses in recent years.
The deal with DJM represents Burnham USA’s second notable office acquisition in the immediate vicinity in recent months.
In December, it bought the nearby 3366 Via Lido building, a roughly 16,000-square-foot waterfront office near Newport Beach’s former city hall. The office, along with a vacant site about a block away on 32nd Street, was sold by Newport Beach-based Olen Properties in a deal reported to be about $16.6 million. A redevelopment of those properties also is in the works.
Burnham USA—which owns other buildings within a few blocks of its latest purchase—and DJM are now believed to be the two largest commercial real estate owners in the Lido Marina Village area.
The 3700 Newport Blvd. building sits close to where DJM will put Nobu, the acclaimed sushi restaurant that will open its first Orange County location there this year.
Burnham USA and its affiliated companies have made their share of news in recent years with restaurant tenants through the development of South Coast Collection, a mix of high-end fashion stores and restaurants in Costa Mesa, and of Castaway Commons, a property on Westcliff Drive in Newport Beach where the organic, plant-based restaurant Gratitude recently opened.
The company is planning a trendy restaurant of its own a few blocks from Nobu in a building it owns on 30th Street, according to an industry source.
Mouse Lease
A former beer distributing facility in Anaheim has been leased to a unit of Walt Disney Co., according to brokerage data.
Walt Disney Parks and Resorts U.S. recently signed a 10-year lease for all of 1625 S. Lewis St., a nearly 110,000-square-foot industrial and office property about 2 miles from the Disneyland Resort area, CoStar Group Inc. records show.
The tenant is a unit of Burbank-based Walt Disney that builds and manages the company’s theme parks. It also has operated locally out of a Fullerton facility; it’s unknown whether employees at that property will move to the new Anaheim site.
The lease was brokered by Jeff Chiate and Rick Ellison with the Irvine office of Cushman & Wakefield Inc.
The South Lewis building was previously owned and used by a unit of Rosemont, Ill.-based beer distributor Reyes Beverage Group, which sold it last year after buying larger area facilities.
Tile mogul Larry Bedrosian last April paid a reported $17.1 million for the building, which property records show including a stand-alone, 25,587-square-foot office building, in addition to industrial space.
The building is close to the bulk of tile and stone merchants that comprise “Tile Mile” in Anaheim and was initially to be used by Fresno-based Bedrosians Tile & Stone, which sells slabs for kitchens and bathrooms, said real estate brokers familiar with the lease deal.
The deal is the second large local Disney-related industrial lease reported in the past six months. The company also inked a lease in October for a 161,794-square-foot building at Panattoni Development Co.’s Anaheim Concourse development.
