Foothill Plaza, a two-building complex in Foothill Ranch that’s one of the highest-quality buildings in the office market in and around Lake Forest, has traded hands at a price approaching $50 million.
The pair of three-story offices, which total about 209,000 square feet, was sold to an affiliate of Santa Monica-based Cornerstone Real Estate Advisers, according to property records.
Data from CoStar Group Inc. put the estimated sale price at $49.4 million, or about $236 per square foot. The property is at 27422 and 27442 Portola Parkway next to the Foothill (241) Toll Road.
An affiliate of CBRE Global Investors Inc., an investment unit of brokerage CBRE Group Inc., sold the property, which was reported to be about 89% leased at the time.
The building traded hands in 2006 for $62.3 million and for $40 million in 2013, according to CoStar.
Kaiser Aluminum Corp., Orange County’s 12th largest public company by market value, has its headquarters at the complex. The company, valued at about $1.4 billion, leases about 25,000 square feet at the buildings in a deal that runs through 2019, according to marketing materials from HFF LP, whose brokers worked on the sale.
HFF LP brokers Ryan Gallagher, Mike McCann, Derreck Barker and Tim Geiman marketed the property for the sellers.
Pricey Renovation
The Irvine Company said it has completed a $150 million renovation of a big apartment complex it bought in San Diego two years ago.
The Newport Beach-based company, believed to be California’s second largest apartment owner, with nearly 50,000 rental units in the state to its name, recently announced it finished a major overhaul of the 1,410-unit The Village Mission Valley apartment community in Mission Valley.
The property, formerly known as La Mirage Apartments, now has a renovated clubhouse with a wine and beer bar, an indoor-outdoor terrace overlooking its swimming pools, and a Wi-Fi lounge, according to a recent report in our sister publication, the San Diego Business Journal. There are also new poolside cabanas and a private dog park.
Irvine Co. bought the 27-year-old complex about two years ago in a deal believed to be worth more than $300 million.
The 74-acre hilltop property is a few blocks from Qualcomm Stadium, home to the San Diego Chargers. It’s the largest of the 15 apartment complexes Irvine Co. owns in San Diego County.
Another 90 units are also being added to the complex, Irvine Co. said.
“We have created an incredible apartment community,” said Chaz Mueller, president of Irvine Co.’s apartment division.
The renovation is the largest ever for an existing apartment property in the company’s portfolio.
Mueller joined Irvine Co. this year to run the company’s 135-complex apartment portfolio. He previously served as chief executive of San Diego-based apartment owner and manager ConAm, which also has a portfolio of about 50,000 units.
Prior to ConAm, he served as president and chief operating officer of apartment giant Archstone until its $16 billion sale in 2013.
Another ex-Archstone exec and former colleague of Mueller, former Chief Executive R. Scot Sellers, serves on Irvine Co.’s board of directors.
Santa Ana Buy
Irvine-based Bascom Group LLC has bought a 44-unit apartment complex in Santa Ana that’s not too far from its headquarters.
The company, whose portfolio has more than 30,000 rental units, announced this month that it bought Southtown at Main Apartments, a 44-unit apartment community near the intersection of Main Street and Warner Avenue.
The property sold for a little more than $8.5 million, or $194,000 per unit. The seller wasn’t disclosed.
Bascom said it plans some upgrades to the complex, which also has four retail spaces.
A new loan for the property was financed by CTBC Bank. Peter Hauser and Shane Shafer with Berkadia brokered the transaction.
