The Foothill Ranch office complex that holds the headquarters of mortgage lender LoanDepot Inc. and other tenants is on the market about 16 months after it last sold.
The three-building Towne Centre Plaza next to the Foothill Transportation Corridor (241) Toll Road was recently listed for sale by the Irvine-based capital markets team of Lee & Associates.
An asking price for the 204,000-square-foot complex, which is fully leased, wasn’t disclosed in the marketing package.
The building should bring in a little more than $3.2 million in net operating income in the next year, according to Lee & Associates. Assuming a capitalization of 6% or less, a purchase price of over $50 million is likely.
The property last traded hands early last year when it sold for about $40 million, according to property records.
The buyer was listed as Pinnacle Asset Management Group LLC by the brokers who worked on the deal; the Business Journal reported at the time that the buyer was affiliated with local businessman Joe Wen, who heads Sakura Paper Inc., a Cypress-based provider of high-end paper products.
Wen owns multiple area commercial real estate properties through a variety of affiliates but has recently been in a selling mood. In February I reported he sold McFadden Center, an 11-building business park in Santa Ana totaling about 185,000 square feet, to Laguna Niguel-based investor The Horowitz Group in a deal valued at nearly $40 million.
LoanDepot leases about 71% of the space at Towne Centre Plaza in a deal that expires in mid-2023. The company, among the largest nonbank mortgage lenders in the U.S., also occupies space in a number of other locations in South Orange County.
Other tenants at the complex include Frito-Lay, Arrow Electronics, and Irvine-based Premier Office Centers, which operates a nearly 11,000-square-foot shared workspace there (see next item).
Tenants pay monthly rents averaging about $2.06 per square foot. The leases of about 23% will roll over in the next four years, according to Lee & Associates, whose Kurt Bruggeman and Ryan Swanson have the listing.
The complex got about $2 million in improvements last year, including a new lobby, flooring, reception area and coffee bar.
New owners could add value by “increasing some tenant amenities including on-site fitness areas and outdoor collaborative work environments,” said Lee & Associate’s marketing package.
Long Beach Add
Premier Business Centers, one of the largest privately held executive suite companies in the country, has a new location in East Long Beach.
The Irvine-based company said it took a floor of about 17,254 square feet at Park Tower, a seven-story building on Pacific Coast Highway. The building is run by another OC-based firm, Anaheim-based Milan Capital Management.
The space offers 58 private offices and minisuites, plus three conference rooms and a reception area, among other features. Offices range from 105 square feet to 360 square feet with space for one to six people.
Premier Business officials said it took over the space from another shared-space provider, Beach Business Center, which had its sole location there.
Premier Business recently took over other operators in a similar manner. Late last year it occupied a few OC spaces previously run by Newport Beach-based Real Office Centers, which had been facing financial issues.
Irvine-based Bascom Group LLC, a real estate investor best known for its large apartment portfolio, created Premier in May 2002 when it purchased the bankrupt American Office Centers in Irvine.
It now has 90 shared workspace locations totaling about 1.5 million square feet.
