Dallas-based Invesco Real Estate, one of the most active institutional investors in Orange County in the past few years, has added a newly built apartment complex in Fullerton and another office in Aliso Viejo to its local portfolio.
The $71 billion real estate arm of Atlanta-based investment management firm Invesco paid about $112 million for the two properties, according to property records.
The largest of the two deals had an affiliate of Invesco buy Malden Station, a 200-unit apartment complex near the Metrolink station in Fullerton, about a mile north of the Riverside (91) Freeway.
The property, at 250 W. Santa Fe Ave., sold for about $77.6 million, or roughly $388,000 per unit, according to CoStar Group Inc. records.
It’s the highest-ever reported per-unit price paid for a rental complex in Fullerton valued at more than $10 million, according to CoStar’s data.
The five-story project opened last year. It features about 7,000 square feet of amenity space, including a clubhouse, pool, spa, and roof deck. The complex wraps around a 163,000-square-foot, six-level parking structure.
Invesco could still be said to have gotten a relative bargain on its purchase, one of several newly built apartments it has bought across the country over the past year.
Prices paid for other high-end rental complexes in Irvine and Huntington Beach have topped $400,000 per unit mark over the past two years, and in some cases have approached $450,000 per unit, according to CoStar records.
The roughly 460,000-square-foot Malden Station project was developed by LMC, the multifamily division of Miami-based homebuilder Lennar Corp.
LMC’s Western U.S. headquarters are in Aliso Viejo, where Lennar runs much of its day-to-day operations.
Lennar launched LMC in 2011, and initially focused on a “build-to-sell” strategy for its projects.
Last year, after raising an additional $250 million investment for the division, Lennar president Rick Beckwitt said the company’s apartment division was tweaking its strategy, and planned to “maintain an ownership interest in a portfolio of income-producing communities.”
The first batch of construction at A-Town, a 43-acre development site near Angel Stadium in Anaheim, is now being headed by LMC, which plans 400 apartments for the first phase.
The Fullerton buy is one of several apartment deals that Invesco and its affiliates are known to have made in OC in the past few years.
In 2012 it paid an estimated $121 million for Club Laguna, a 421-unit apartment complex in Laguna Beach.
Two years ago it disclosed paying $187.2 million for an unnamed, 520-unit apartment complex at the Park Place mixed-use campus in Irvine. The deal appears to be for Vireo, a development headed by Irvine-based Sares-Regis Group.
Invesco is one of the investors in Sares-Regis’ multifamily division, along with Switzerland-based UBS AG and Penn Square Real Estate Group in Steamboat Springs, Colo.
Dell Office
Invesco’s recent deals also added a notable office in Aliso Viejo to its local portfolio.
Property records show the investor payed a little under $34.8 million for 4 Polaris Way, a 90,600-square-foot office just off the San Joaquin Hills (73) toll road.
The building was sold by Dell Inc., which took over ownership as part of its $2.4 billion buy of Quest Software in 2012.
It’s the second local office previously owned by Dell and Quest that Invesco currently owns.
Last year it paid an estimated $33 million for 5 Polaris Way, a 78,702-square-foot building next-door to its latest purchase. Dell sold the office about three years ago to Irvine-based LBA Realty, which in turn sold it to Invesco last summer.
Dell no longer leases space at 5 Polaris but occupies all of the 4 Polaris building, according to brokerage data. It hasn’t announced plans to depart that location.
Invesco now owns close to 640,000 square feet of office space in Aliso Viejo and is one of the largest landlords in the city, according to property records.
Most of the investments have taken place since the start of 2015; it has spent close to $250 million on office buys in the city since then.
It also owns 2 and 3 Polaris Way, four-story offices that total about 200,000 square feet and are on the same street as its latest buy.
Other investments in the city include 15 and 25 Enterprise, five-story offices at the Summit Office Campus, which is on the opposite side of the toll road from the Polaris Way buildings.
The largely full Summit offices hold the local operations of Lennar, LMC, and FivePoint Holdings LLC, among other tenants.
Invesco has at least one Orange County property on the sales block, according to the investor’s website.
Bayside Square, a midsized office project in Newport Beach that it owns in a venture with Irvine-based Shopoff Realty Investments, is listed for sale by the Newport Beach office of Newmark Grubb Knight Frank.
The two-building office property is on Bayside Drive at the entrance to Balboa Island. It totals about 35,384 square feet. Invesco and Shopoff Realty paid an estimated $22 million for the complex in 2015, according to CoStar records.
A time frame for the completion of the sale hasn’t been disclosed.
