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Sunday, Oct 2, 2022

Home of In-Flight Entertainment Operation Purchased

An Irvine Spectrum office leased to an in-flight entertainment unit of aerospace and defense company Thales USA has traded hands for nearly $30 million.

Property records show an investor with ties to Hartford, Conn.-based Cornerstone Real Estate Advisers LLC bought 58 Discovery, a two-story office near the Laguna (133) Freeway.

The 127,030-square-foot building sits about halfway between the San Diego (405) and Santa Ana (5) freeways and is leased to the Inflight Entertainment and Connectivity division of Thales USA.

The division makes a variety of communication systems for airliners, including back-seat screens and satellite-based connectivity products.

Thales USA is the American division of France-based Thales Group.

Costar Group Inc. records show the building trading hands for $29.3 million, or about $230 per square foot. The property is on 8.3 acres of land and was sold by LBA Realty of Irvine.

About 375 people are estimated to work for Thales USA at the building, which has more than 75,000 square feet of office space. The remainder is used for design, testing and assembly uses.

Thales USA has been in the Irvine office since at least 2004, according to brokerage data. The company recently signed a lease extension that will keep it in the building at least through 2025.

The net operating income for the property this year is expected to exceed $1.8 million, according to marketing materials by the Irvine office of Jones Lang LaSalle, which had the listing for the property.

It was built in 2000 and renovated last year, according to the firm’s marketing materials.

CT Deals

Aliso Viejo-based CT Realty Investors has bought an industrial building in Irvine, and the company also has a development project in the works in the City of Industry.

An affiliate of CT Realty last month completed the purchase of 9 Holland, a 185,020-square-foot industrial building off Bake Parkway, according to brokerage data.

The building, near the former El Toro Marine base, long held the local operations of auto parts maker Calsonic North America Inc., a unit of Japan-based Calsonic Kansei Corp.

Calsonic vacated the building a few years ago and sold the then-empty facility in 2010 to a venture led by Costa Mesa-based Brookhollow Industrial Properties LLC for a reported $9 million.

Terms of Brookhollow’s sale with CT Realty weren’t disclosed. The building is now reported to be about 50% leased.

CoStar records show Bio-Rad Laboratories Inc., a Bay Area maker of medical testing and research products, occupying about 88,000 square feet of space at the building under a long-term lease.

Elsewhere, CT Realty said this month that it completed the $6.2 million purchase of a 7.7-acre site in the City of Industry.

It bought the property, which holds a 121,000-square-foot manufacturing facility, from an area cabinet maker.

CT Realty said it will demolish the building to make way for a 168,000-square-foot class A warehouse-and-distribution building that will include 16,000 square feet of office space.

The project is scheduled for completion in the second quarter of 2014.

Commerce Development

Another local venture has plans for its own tear-down industrial project in the city of Commerce.

REDA Bascom Ventures, a partnership between Newport Beach-based Real Estate Development Associates LLC and Bascom Group LLC of Irvine, recently teamed up with Seattle-based Washington Capital Management Inc. to acquire a former Hill’s Pet Nutrition manufacturing facility in Commerce.

They acquired the 5.3-acre property from a private investor for $7 million. The site currently includes three buildings totaling about 233,000 square feet.

REDA Bascom Ventures plans to demolish the existing structures and build a distribution facility totaling 141,000 square feet.

Bascom Group and its principals have invested in a variety of real estate ventures, but the company is best known for its apartment investments. It’s one of the country’s 50 largest multifamily owners.

Recent acquisitions Bascom has been involved in include Andalucia Apartments, a 175-unit community about a mile from downtown Palm Springs. It bought that complex last month for an undisclosed price and said it plans to renovate the property.

It is the 16th apartment acquisition for Bascom in the past year, the company said.

Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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