Add another notable property along Coast Highway to the local real estate portfolio of the Moshayedi family.
The Village, a roughly 21,000-square-foot office and retail property in Corona del Mar, was acquired earlier this month by an affiliate of MSM Global Ventures LLC. MSM is a real estate investment company headed by Mark Moshayedi, one of Orange County’s best-known tech entrepreneur, coastal property owner and classic-car collector.
The property, at 2600 E. Coast Highway, sold for $19 million, or nearly $900 per square foot, according to property records. It’s among the higher per-square-foot prices seen of late for an area property of that size.
The MSM affiliate, operating under the SMM 2600 PCH LLC name, took out a $7.8 million loan with Morgan Stanley to fund the deal, property records indicate. The property was sold by a Beverly Hills entity which had owned the CdM site since the 1990s, state records indicate.
The Village sits just south of where Coast Highway meets MacArthur Boulevard, and counts an assortment of smaller-size office tenants, alongside a few restaurants and retail businesses.
The building sold at a capitalization rate of just 2%, given a large amount of vacancy currently at the site, CoStar Group Inc. records indicate. Monthly rent for some spaces there runs around $5 per square foot, brokerage materials indicate.
Area Collectors
Mark Moshayedi and his family made his first fortune through Santa Ana-based computer storage device-maker STEC Inc., which he co-founded in 1990 with brothers Manouch and Mike.
In addition to holding more than 50 patents to his name, Mark served as the company’s chief executive for a time.
STEC was sold in 2013 to a unit of Western Digital Corp., then based in Irvine, for $340 million.
The family put much of its earnings from STEC into real estate, with the Mariner’s Mile area of Newport Beach, a few miles away from The Village along Coast Highway, a particular focus.
Mark Moshayedi’s investments are now largely made through MSM and Space Investment Partners, a separate venture that he founded about four years ago with Ryan Gallagher, who was previously a senior managing director and co-head of the Orange County office of commercial brokerage HFF LP.
Manouch Moshayedi’s real investments are largely consolidated under his MX3 Ventures business. He’s been looking to revamp a large stretch of Mariner’s Mile that he owns.
