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KBS Eyes Charlotte Market With $147M Tower Buy

An affiliate of Newport Beach-based KBS Realty Advisors is under contract to buy a 24-story office tower in Charlotte, N.C.

The company’s KBS Real Estate Investment Trust III Inc. last month entered into a deal to buy Carillon, a 476,308-square-foot office, from an affiliate of Hines Interests LP in Houston.

The Hines affiliate paid about $140 million for the tower in 2007, according to local reports.

The building is expected to trade hands this time for $147 million, or just under $309 per square foot. Carillon was constructed in 1991 and was 92% leased as of mid-December, according to regulatory filings.

KBS and its affiliates already own two other towers in North Carolina in and around Raleigh, the state capital. It’s also acting as the co-developer with locally based Kane Realty Corp. on a 12-story, 329,000-square-foot office tower in Raleigh.

The Carillon property would be the only Charlotte office in KBS’ portfolio, according to the company’s website. It already owns an industrial property and a pair of apartment complexes in the vicinity.

Custom Canyon Homes

Irvine-based Advanced Real Estate Services Inc. is planning to build a small collection of semicustom homes near Cook’s Corner in Santiago Canyon.

The developer, which also goes by the ARES name, said it has partnered with Baywood Development, an Irvine-based homebuilder, to build five homes on acre-plus lots in the Orange County foothills east of Lake Forest.

Starting prices for the Oak Summit Estates homes will be around $2.2 million, with no HOA or Mello-Roos dues.

The homes will run about 4,200 square feet and have downstairs master suites, plus three additional guest suites, 4 ½ baths, a loft, flex room, outdoor loggia and three-car garage, among other features.

The 10 acres being used for the project has been owned by ARES President Richard Julian for over 20 years.

It’s ARES’ second pricey housing project under way in OC—it also has an extensive apartment portfolio, among other holdings.

The company also is developing Aerie, a luxury condominium development in Corona del Mar.

The oceanfront project will hold a seven-unit condominium complex, each unit 3,000 to 6,500 square feet.

Aerie is near the intersection of Ocean Boulevard and Carnation Avenue where a 15-unit apartment complex used to be. It’s scheduled to be finished in about a year.

Surf City Sale

UDR Inc., the apartment owner and developer that’s building the multifamily component of the Pacific City project in Huntington Beach, has sold another complex it owned in the city.

The Highlands Ranch, Colo.-based company last month completed the sale of the Huntington Villas apartments, a 400-unit complex near the intersection of Beach Boulevard and Warner Avenue.

The sale was part of an eight-property, 1,744-unit portfolio sale of UDR complexes to an affiliate of Rochester, N.Y.-based Home Properties Inc. totaling $284 million.

Huntington Villas was the largest of the eight complexes trading hands; UDR valued it at about $87 million late last year, according to regulatory filings.

UDR continues to own four other complexes in Surf City and is building the Residences at Pacific City, a 516-unit rental project on Pacific Coast Highway.

It paid Miami-based Crescent Heights about $77.8 million for the land for that project, according to regulatory filings.

UDR also is involved in new developments in Irvine and Anaheim’s Platinum Triangle.

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Mark Mueller
Mark Mueller
Mark is the former Editor-in-Chief and current Community Editor of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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