An Orange County nonprofit organization spent $26.5 million to buy a nearly 70,000-square-foot building at 2400 Barranca Pkwy.
Irvine Community Land Trust bought the commercial property with USA Properties Fund Inc. from Gemdale USA for about $380 per square foot and plans to convert the two-floor office building into an apartment building with affordable housing units.
The deal was facilitated by Institutional Property Advisors, a division of Marcus & Millichap.
“The selected buyer will look to develop much needed affordable multifamily housing on the site,” Kevin Green, executive managing director of investments for Institutional Property Advisors, said in a statement.
Green said his firm procured more than 30 offers from commercial and residential developers for the 2400 Barranca Pkwy. site, which is located within Irvine Business Complex, or IBC.
Redevelopment of the 51-year-old site into an affordable housing site fits within a California mandate requiring cities to increase the supply of residential units.
“Irvine’s 2045 General Plan includes a new residential housing overlay that will target 15,000 new housing units in the IBC and eliminate the need for a site-specific environmental impact report, zone change, amendment to master plan and city council vote to stimulate new high-density housing developments in a location that is ripe for multifamily housing,” Joe Grabiec, an executive director with Institutional Property Advisors, said in a statement.
“Over the next five years, multifamily vacancy in Irvine is projected to be 3.66% and year-over-year rent growth is expected to be 3.2%,” Grabiec continued.
Tenants occupying the building at the time of the sale, per CoStar data, included coworking company iBase Spaces LLC and medical technology company Modulim.
