Newport Beach-based RiverRock Real Estate Group Inc. has picked up a sizeable account for its property management business in the latest big change in the operations for Voit Real Estate Services and its affiliated companies.
RiverRock, which has a companywide portfolio of about 26 million square feet, announced this month that it was awarded management of a 10-property, 1.5-million-square-foot portfolio of buildings owned by Newport Beach-based Voit Development. The properties are in Orange County, Los Angeles, Arizona and Hawaii.
Local buildings involved in the deal include: Voit La Palma Corporate Park, a 131,780-square-foot industrial property in La Palma; Red Hill Technology Center, a 94,557-square-foot office in Santa Ana; and Triton Way Industrial Park, a 21,988-square-foot industrial property in Laguna Hills.
“Our outsourcing of property management will allow our team to focus on enhancing our portfolio through strategic acquisitions,” said Voit Development Chairman Bob Voit in a statement.
The deal is the second between Voit and RiverRock announced in the past month.
Last month Voit Real Estate Services, the commercial brokerage affiliated with the development company, announced that RiverRock will serve as Voit’s preferred provider of property management services in Southern California.
Voit, meanwhile, will serve as preferred provider of brokerage services to RiverRock under the agreement.
The deal has large implications for the area’s market based on the size of the companies’ local presence. Voit Real Estate Services was Orange County’s ninth largest commercial brokerage last year with $1 billion worth of sales and transactions, and RiverRock was the 13th largest property manager, with 3.8 million square feet managed in the area, according to Business Journal data.
“Voit sees this as a strategic move following our restructure to offer our clients a proven and specialized provider of asset services that will enable them to realize maximum value of their assets over the near- and long-term,” said Eric Hinkelman, Voit Real Estate’s chief executive, following last month’s RiverRock announcement.
Hinkelman joined Voit’s brokerage operations last year as executive managing director. He was named chief executive last month as part of a corporate restructuring that included the conversion of Voit Real Estate Services into a broker-led organization.
Bob Voit, who founded the company in the early 1970s, will now focus his efforts on his development and investment business while retaining the chairman’s position for the company’s brokerage business.
Broadcom Buys
Broadcom Corp. late last month confirmed plans to build a big—and pricey—office campus for its operations in Silicon Valley.
The company’s latest quarterly report disclosed that last month it completed an agreement to purchase 26 acres in Santa Clara County that currently holds four office buildings totaling about 537,000 square feet.
The site, along with the existing buildings, has space for more office development that will allow Broadcom to occupy about 1.1 million square feet at the campus, according to regulatory filings.
The deal in North San Jose had been rumored to be in the works for a few months. Apple Inc. was also a potential buyer of the property, according to local reports.
Broadcom said in regulatory filings that it’s paying $207 million for the existing offices and excess land.
The construction of the campus, plus associated relocation costs, will cost an additional $400 million through 2017, according to Broadcom, which plans to occupy the facilities in 2018.
The company paid $156 million in March for its new 73-acre campus site in Irvine, where steel for its first five buildings is being erected.
Plans call for the Irvine campus near Orange County Great Park to encompass 1.1 million square feet in its first phase, with the potential to expand to 2 million square feet.
Broadcom estimated in its last annual report that construction of the Irvine facility and the associated relocation would cost an additional $650 million through 2018.
