Orange County’s largest real estate owner adjusted its business model for residential and commercial properties in response to coronavirus concerns.
In addition to upping cleaning efforts like other local landlords, Newport Beach-based Irvine Co. has offered rent payment flexibility for retail and apartment tenants.
“We understand these are unprecedented times for our country and the world,” Butch Knerr, president of Irvine Company Retail Properties, said in a letter to retail tenants. “Working together, we will move forward and emerge stronger than ever.”
It counts a commercial portfolio of nearly 35 million square feet in Orange County and nearly 60 million square feet companywide; and has about 125 apartment communities in California.
Retail
The landowner has kept its primary shopping centers open with adjusted hours.
It owns three of the county’s six largest shopping centers, ranked by sales, according to Business Journal research.
Newport Beach’s Fashion Island, with about $910 million in annual taxable sales, is the second largest in OC; The Market Place in Tustin is No. 4 with close to $570 million; and Irvine Spectrum Center is No. 6 with approximately $435 million.
In a letter shared with the Business Journal, the property owner offered an optional rent-deferral program for tenants, several of which, including Apple and Nordstrom among others, have temporarily halted business.
Beginning April 1, the company will defer all rent charges for 90 days, which will be paid back over a 12-month period with no interest, starting in January of next year.
Irvine Co. is also sharing resources and programs available for businesses “during this difficult time.”
Residential
In a letter to tenants of its apartment communities, which total about 60,000 units statewide, the property manager said it will let those unable to pay full rent to defer half of their April and May payments over six months without interest.
Options are also available for custom lease agreements for those who “would like to discuss an alternative rent deferral arrangement,” Jim Krohn, president of Irvine Company Apartment Communities, said in the letter.
Office
It has expanded cleaning of local office properties, which include UCI Research Park, Discovery Park and Irvine Towers, among several others in the Irvine Business Complex and Spectrum markets and postponed events and gatherings, and closed on-site fitness and conference centers, game rooms, lounges, and some dining options.
Multitenant properties remain open; single-tenant sites will stay open “at the discretion of the customer.”
As of last week, all Irvine Co. office buildings remain open.
