The Square on Main, a 420,000-square-foot collection of office buildings in the city of Orange, has traded hands for $97.2 million, in one of the biggest multi-tenant office sales seen locally the past year.
LPC West, the West Coast arm of national real estate firm Lincoln Property Co. that’s among OC’s larger landlords, bought the five-building complex for about $230 per square foot in a venture with TriGate Capital LLC, a Dallas-based real estate investment manager.
The deal represents a sign of confidence for OC’s office market, according to the buyers.
The Square “is a landmark commercial project that reflects the vibrancy of the Orange County region,” Parke Miller, executive vice president of Southern California for LPC West, told the Business Journal via email.
“Along with significant visibility, accessibility and amenities, the campus features iconic tenants who began to return to work ahead of the curve during the pandemic,” Miller said.
“It represents a prime example of why we remain bullish on the promise of well-positioned, highly amenitized office space in this market as businesses increasingly return to in-person work.”
LPC West, with local offices in Newport Beach, counts an OC portfolio that now runs 7.2 million square feet, and includes offices, industrial buildings and retail properties.
OCTA Base
The Square has two 12-story towers, one six-story building and a pair of single-story buildings, along with a large parking structure, at the corner of Main Street and La Veta Avenue.
The complex is 96.5% leased with 13 tenants, including the Orange County Transportation Authority, the county’s main transportation commission, which occupies the entirety of one of the property’s two towers at 600 S. Main St., according to brokerage data.
Other big tenants include Union Bank and dental services organization Western Dental, the latter of which has its headquarters at the campus’ 530 S. Main building.
Both are tenants of more than 25 years, according to the new owners, who bought the campus from a UBS-backed venture.
The complex’s last reported sale was in 2007, when it sold for $92 million, according to CoStar Group Inc. records.
The new owners took out a $69.5 million loan with Capital One to finance the deal, property records indicate.
Staying Offices
The sale, completed in February, marks the largest sale of a multi-building office complex in Central Orange County in about seven months, not factoring in buildings eventually slated for industrial redevelopment by their new owners. It’s also among only a few area deals to involve high-rise offices over the course of the pandemic.
The new owners of The Square plan to maintain the campus as office space and said they would “implement a variety of sustainability upgrades and overall operational enhancements throughout the property to help boost efficiency and limit its environmental footprint.”
Long History
The complex, previously known as Union Bank Square, was one of the first multiple-building office projects built in Orange County, completed between 1962 and 1967.
The 7.6-acre complex is just north of the Garden Grove (22) Freeway and is across the street from pediatric hospital Children’s Health of Orange County. MainPlace Mall is a short walk from the offices.
TriGate Capital officials said they are looking at additional investments in the area.
“We see tremendous potential ahead for this dynamic region and future transactions with high-caliber partners like LPC West,” TriGate Vice President Milan Bhatt said.
