The Santa Ana office complex that holds the soon-to-be former headquarters of Ingram Micro Inc. has traded hands.
The Brookhollow Group, a Costa Mesa-based investment and development company, recently completed the purchase of Pacific Center, a two-building office complex totaling 392,877 square feet.
The property is just off the Costa Mesa (55) Freeway on St. Andrew Place.
Terms of the sale were not disclosed.
The buildings likely traded hands for more than $40 million based on other recent large sales of similar-sized office properties. That would make it one of Orange County’s larger office sales of the year.
Brookhollow Group bought Pacific Center in a venture with longtime financial partner PCCP LLP, a Los Angeles-based investment management firm that has about $5.5 billion in assets under management.
It is the largest local reported purchase for Brookhollow Group in several years.
The seller of Pacific Center is said to be a large institutional owner based on the East Coast. It was represented by Kevin Shannon, Paul Jones, Scott Schumacher, and Blake Bokosky, brokers with CBRE Group Inc.
The campus is fully leased but will be completely vacant by August, making it one of the county’s largest empty blocks of office space, according to CBRE.
Ingram Micro, Orange County’s largest company by sales and the largest tenant at Pacific Center, has used the campus as its headquarters for the past 15 years, but is gearing up for a move to Irvine this summer.
It leases all the space at one of the campus’ buildings that runs about 188,000 square feet.
The other building at Pacific Center is about 204,000 square feet and is partly leased to other tenants, who are also moving out following the sale.
Ingram Lease
The Business Journal reported in January that Ingram had signed a nearly 175,000-square-foot lease at the low-rise portion of the Park Place mixed-use campus near John Wayne Airport.
The deal, one of the largest local office leases in the past few years, runs for more than 10 years and begins this summer, according to real estate sources.
Ingram has yet to officially announce the relocation of its headquarters to Irvine or terms of its new lease, in its regulatory filings.
The company has about 1,000 workers in Santa Ana, according to Business Journal records.
It was one of the five largest employers there as of 2010, according to the most recent data available from the city.
Ingram has a market value of about $4.2 billion.
Ingram once owned Pacific Center but sold the two-building campus in the late 1990s.
The soon-to-be-empty buildings offer the new owners “a true value-add opportunity to lease-up the vacant buildings and put on separate parcels, while taking advantage of future rental rate growth in the rising Orange County office market,” said Jones, a first vice president in CBRE’s Newport Beach office.
OC “is one of the top rental rate growth markets in the county, projecting an increase of more than 30% over the next five years,” Jones said.
The two buildings at Pacific Center sit on one parcel totaling 24.4 acres and are connected via a fly bridge.
