Shea Properties has sold one of two large offices it built and owned at its 40-acre Vantis mixed-use campus in Aliso Viejo.
An affiliate of the Brookhollow Group, a Costa Mesa-based investment and development company, recently completed the purchase of 120 Vantis, a 177,000-square-foot building Shea built in 2002.
The office is on Aliso Viejo Parkway about half a mile south of the 73 Toll Road and just down the street from the recently opened U.S. headquarters of medical device maker MicroVention Terumo.
Brookhollow paid about $53.6 million for the multitenant building, according to property records, or about $303 per square foot.
The five-story office was about 85% leased at the time of sale, according to CoStar Group Inc. records.
Large tenants include Liberty Mutual Insurance, which has a regional office there, and Sunstone Hotel Investors, which is headquartered in the building.
It’s Brookhollow’s largest reported office investment in Orange County since 2015, when it bought Pacific Center, a two-building office complex in Santa Ana totaling 392,877 square feet. It paid about $44 million for that complex, which held the former headquarters of Ingram Micro Inc.
Shea Properties continues to own the 78,000-square-foot 130 Vantis building at the Aliso Viejo campus. The three-story building holds Shea’s headquarters, among other tenants.
Other portions of Vantis include housing, apartments, retail and a hotel.
Del Mar Debut
Irvine Co. has bought an office complex in a part of San Diego County where it hadn’t had a presence.
The Newport Beach-based real estate firm paid an undisclosed amount last month for Township 14, a two-building office in Del Mar Heights.
The three- and four-story buildings, totaling 127,000 square feet, are at 12670 and 12680 High Bluff Drive, just off the 5 Freeway and a few miles north of the Torrey Pines golf courses.
A deal in the $40 million to $50 million range looks likely, based on the other recent reported office sales in the region.
Township 14 was acquired from an affiliate of Nuveen, the investment management arm of New York-based TIAA-CREF.
It’s the first acquisition in that area of San Diego’s Carmel Valley for Irvine Co., which was already the largest office owner in the county. It’s the company’s second-largest office market outside of OC.
“Our decision to acquire Township 14 is the latest sign of our long-term faith in San Diego as one of the most attractive regions in the world for forward-thinking, growth-minded companies, said Doug Holte, president of Irvine Co.’s office division, in a statement.
The Carmel Valley office of law firm Latham & Watkins is the most prominent tenant.
Not So Fast
A big-money deal to sell Los Angeles’ Union Bank Plaza has fallen through for Newport Beach-based KBS Realty Advisors.
In the Sept. 25 issue of the Business Journal, I wrote on a nontraded real estate investment trust run by KBS being under contract to sell the 40-story tower in downtown L.A. to an affiliate of Pacific Reach Properties. The deal was to be for $280 million, and the buyer had until early November to close on it.
According to a Sept. 26 regulatory filing, the purchaser changed course on its plans and “exercised its right to terminate the agreement,” KBS said. A reason for the change wasn’t disclosed.
An earlier Securities and Exchange Commission filing by KBS notes that “in some circumstances, if the purchaser fails to complete the acquisition, it may forfeit up to $10.0 million of earnest money.”
That doesn’t appear to be the case. KBS said on Sept. 26 that Pacific Reach “will receive a refund of funds deposited as earnest money toward the purchase price.”
It’s unknown if there’s a backup buyer to purchase the high-profile tower, which KBS acquired in 2010 for $208 million.
