Irvine Company has bought a low-rise office campus in the shadow of Broadcom Ltd.’s new office campus in the Irvine Spectrum.
The Newport Beach-based real estate owner and developer recently closed on the purchase of Alton Plaza, a 19-building property whose one- and two-story offices total about 216,000 square feet.
Alton Plaza is near the intersection of Alton Parkway and Mauchly, a few blocks east of the Santa Ana (I-5) Freeway and about half a mile from Irvine’s train station.
The campus backs up to the future campus of chipmaker Broadcom that’s being built at the edge of Great Park Neighborhoods. The Broadcom project is the largest office development in Orange County in over a decade.
Irvine Co. paid about $58 million for Alton Plaza, or a little more than $268 per square foot, according to property records.
It was sold by Los Angeles-based AEW Capital Management LP, property records show.
It’s Irvine Co.’s first reported purchase of an existing Orange County office in about five years, when it bought a 186,000-square-foot building near Jamboree Road and the Santa Ana (I-5) Freeway that’s now used by aerospace and defense contractor Meggitt PLC.
Privately held Irvine Co., OC’s largest commercial real estate owner, has put most of its energies here since then building offices and upgrading existing properties.
Alton Plaza’s unique attributes, in particular buildings designed for smaller tenants, justified the acquisition, said Steve Case, executive vice president for Irvine Co.’s office division.
Buildings there average a little more than 11,000 square feet, so “it’s a unique offering for the Spectrum marketplace,” he said.
The campus is home to about 25 companies and 700 employees. It’s about 95% leased to a variety of technology, medical device, engineering, real estate and other companies.
Developing multiple for-lease offices of a relatively small size is something “you can’t really afford to do anymore in that market,” he said.
Alton Plaza’s buildings are about the same size combined as two glitzy, midsized offices Irvine Co. is building a few miles away at its Sand Canyon Business Center campus, and it will have some amenities similar to those at the new four-story Sand Canyon buildings once upgrades are made.
Case said Irvine Co. plans new outdoor spaces for employee use in the near term and will upgrade the building’s interior as existing leases expire.
The company owns several million square feet of low- and midrise office space in the market surrounding its Spectrum shopping center.
It also owns six area high-rises, including the 21-story 200 Spectrum Center, which opened about a year ago and is nearly full, and a sister building at 400 Spectrum Center that will open this summer.
The Spectrum area “has emerged as a major hub for innovators,” Case said, making it an appealing buy.
“Our decision to acquire Alton Plaza is part of a broader effort to enhance Irvine Spectrum’s appeal as the ultimate address for forward-thinking businesses. We want to create memorable workplace experiences that support growth and innovation while enhancing recruitment and retention efforts.”
