The two newest multitenant buildings at the Summit office campus in Aliso Viejo have traded hands for $86 million, tops for a South County office sale this year.
The buildings, at 20 Enterprise and 30 Enterprise, sold for $42.7 million and $43.3 million, respectively.
Denver-based private equity firm Ascentris LLC bought the offices for about $341 per square foot through a joint venture with San Diego-based Cypress Office Properties LLC. It’s the first partnership between the two companies.
The deal was financed in part by a $65.8 million loan through RCF National Bank.
“Ascentris has been focused on the Aliso Viejo submarket for several years so we moved quickly when the acquisition of [the buildings] was presented to us,” Managing Director Jeffrey Stonger said.
The company reportedly does not have any other office holdings in the area. Other Cypress properties in OC include Santa Ana’s 3 Hutton Center and Orange’s Centrum South office building.
RREEF Management sold the offices, totaling 252,504 square feet, on behalf of the Los Angeles County Employees Retirement Association.
Leasing Opportunity
The two offices were built in 2009 by locally based Parker Properties.
The sale includes a 1,232-space parking structure, which features a large waterfall at its entrance; Ascentris now calls the Summit buildings The Cascades.
30 Enterprise was 98% leased at the time of sale to tenants including Avanir Pharmaceuticals Inc. and Labarre & Isknee. The 20 Enterprise building was just 25% leased at the time of sale, and will be marketed for lease by CBRE Group Inc.
Prior tenants have included UST Global, which now operates elsewhere in the city, and software firm Telogis, now part of Verizon.
Upgrades Planned
The new owners are planning interior and exterior upgrades for the property, which “is one of the only options for large tenants seeking 50,000-plus square feet of contiguous space,” Ascentris said in a statement.
The Summit deal is No. 2 among office trades in OC thus far in OC this year.
Hines Interest LP paid $95 million about a month ago to buy out financial partner Oaktree Capital Management LP for two of Oaktree’s remaining holdings in Brea Place, one of the city’s largest office complexes.
