Centerstone Plaza, a six-building Irvine office and retail complex near The Crossroads shopping center, is on the sales block.
New York-based private equity investor Blackstone Group LP put the 157,167-square-foot property up for sale earlier this month.
An asking price hasn’t been disclosed.
Assessed Value
The complex, built in 1988, had an assessed value of about $24 million in 2008, near the peak of the last commercial real estate boom.
Its assessed value was closer to $14 million as recently as 2010, according to CoStar Group Inc. records.
Centerstone Plaza is at 4000-4040 Barranca Parkway, near Culver Drive. It’s across the street from Newport Beach-based Irvine Company’s Crossroads retail center, which counts a new LA Fitness gym and a Target, among other tenants.
Centerstone includes four, two-story office buildings and two free-standing restaurants, which hold an Islands Restaurant and Mimi’s Café.
St. Joseph Hospital is the primary occupant of one of the four office buildings. Other tenants include First Team Real Estate executive suite operator Premier Business Centers and Tarbell Realtors.
The complex is nearly full, according to brokerage data.
Brokers with the Newport Beach office of Newmark Grubb Knight Frank have the listing for the Irvine property.
Offers
Offers are expected in by mid-October, according to Newmark Grubb Executive Managing Director Robert Griffith, who is marketing the property along with Managing Director Greg May.
The property’s location and stable tenant roster “make this a somewhat rare and very attractive investment opportunity,” Griffith said.
“We expect the listing to generate significant interest from local buyers, as well as leading institutional investors,” Griffith said.
Blackstone, one of the country’s largest real estate owners and investors, last year took over Centerstone Plaza along with more than two dozen other properties across the U.S. The deal totaled about 2.8 million square feet and was valued at about $800 million.
Glenborough
The portfolio was previously owned by Glenborough Realty Trust, which was acquired by a unit of Morgan Stanley in 2006 in a deal reportedly worth $1.9 billion.
Blackstone owned debt tied to the 2006 deal and took over the portfolio after Morgan Stanley opted not to repay about $820 million in loans that were coming due, according to national reports.
Centerstone Plaza is one of two Orange County-based properties to trade hands in last year’s deal. The other is Newport Plaza, a 106,000-square-foot office at 895 Dove St. in Newport Beach, near John Wayne Airport.
The five-story Newport Plaza office, which like Centerstone Plaza also is nearly 100% occupied, isn’t on the sales market. Blackstone still hasn’t decided what to do with the property, according to Griffith.
