Newport Beach-based Davenport Partners Inc. has completed the largest office buy seen in the Inland Empire so far this year, according to brokerage data.
The real estate investor and manager recently completed its purchase of the Towers at Riverwalk, a two-building complex at Riverside’s 73-acre Riverwalk mixed-use office campus.
The four-story offices total a little less than 200,000 square feet, and were built in 2008 by Turner Development Corp., which now operates under the Turner Real Estate Investments name in Newport Beach.
It’s one of the newest offices in Riverside County, and was among the last offices built at the 1-million-square-foot Riverwalk project.
A Newport Beach-based entity known as Turner Cottonwood LLC sold the property, according to Davenport.
Terms of the deal weren’t disclosed by the buyer or seller, but a market report from Newport Beach’s Voit Real Estate Services said the buildings traded hands for about $15.6 million.
At that price, it would be the most expensive office complex to sell in the Inland Empire through the first nine months of the year, according to Voit’s data.
“The property was purchased at a real attractive basis,” allowing the new owner the ability to offer “the most competitive lease rates in the market,” according to Steve Blue, a partner at Davenport.
Davenport said it will handle management and leasing of the property and intends to work directly with local brokers who represent tenants to lease the vacant space.
The new owner said it will be setting aside some of the office space for smaller tenants, although the buildings also have full floors available for large users.
Davenport owns and manages buildings in Hawaii, OC and other parts of Southern California, including Lido Marina Village and the 1400 Quail Street office in Newport Beach.
CT Realty Adds Apartments
Aliso Viejo-based CT Realty Investors, which has made its mark this year with a flurry of large industrial deals in the Inland Empire, has closed on another apartment deal in Costa Mesa.
The company recently bought the Casa Granada Apartments, a 65-unit complex at 400 Merrimac Way. The property’s next to Orange Coast College and a few blocks from the Orange County Fairgrounds.
The complex, which counts 22 one-bedroom apartments and 43 two-bedroom units, sold for just less than $12 million, or roughly $184,000 per unit.
The seller was Sandy, Utah-based GBW Investments.
The capitalization rate for the deal was 5%, according to Pat Swanson, vice president for the Irvine office of Colliers International, who represented the buyer and seller in the deal.
The buy is at least the fourth Costa Mesa-based apartment complex that CT Realty has bought this year; in May it was part of a venture that paid about $10 million for three smaller complexes that totaled about 55 apartments.
At the time of that deal, CT Realty Chief Executive James “Watty” Watson said the investor was looking to buy 300 to 400 apartments in Costa Mesa this year, and also was targeting other coastal areas for apartment buys.
Tustin Buy
Valencia Gardens, a 165-unit apartment complex in Tustin, has been sold for $25.5 million.
Valencia Gardens Apartments Owner LLC was the buyer of the property. State records show the buyer having ties to Tarzana-based JB Partners Group Inc., an apartment investor that owns about 50 properties in California.
It’s the buyer’s first purchase in Orange County, according to brokers with the Newport Beach office of Hendricks & Partners who represented an affiliate of Long Beach-based NNC Apartment Ventures LLC that was the seller.
The seller has two other OC complexes in its portfolio, in Costa Mesa and Huntington Beach, according to the company’s website.
The apartment complex is at 15742 Williams St., just off McFadden Avenue and a few blocks from the Costa Mesa (55) Freeway. It was built in 1970 and counts 90 one-bedroom and 75 two-bedroom units.
The sale works out to nearly $155,000 per apartment.
Main Street Lease
Morgan Stanley Smith Barney has renewed the lease for its Irvine offices.
The New York-based investment bank recently renewed a 22,470-square-foot lease at 1901 Main St., just off MacArthur Boulevard near John Wayne Airport. The lease runs for more than five years, according to the building’s owner, Atlanta-based Piedmont Office Realty Trust Inc.
Piedmont has owned the 172,000-square-foot building since 2003. The office is 87% leased, according to CoStar Group Inc. records.
