Irvine Co.’s Donald Bren, the country’s wealthiest real estate executive, continues to make investments in the office sector, both in and out of Orange County.
Minority partner Tishman Speyer revealed this month that it was bought out by Bren’s Newport Beach-based firm for the company’s most valuable office property, New York’s famed MetLife Building.
The 58-story skyscraper, also known as 200 Park Ave., has been in Irvine Co.’s portfolio for close to 20 years, though the real estate giant’s involvement in the building wasn’t known until 2015, when documents related to a refinancing of the property were made public in 2015.
It’s the only New York office asset in the portfolio of Irvine Co., whose commercial portfolio spans some 65 million square feet.
Irvine Co. over the years has taken an increasing stake in the building from New York’s Tishman Speyer and reportedly had over a 97% stake in the Midtown tower as of last year.
It now has full ownership; the price Irvine Co. paid for the remaining stake of the 3.1 million-square-foot office wasn’t disclosed.
The tower was recently valued at around $3 billion — or roughly $968 per square foot, roughly double the PSF price for a high-end office tower in OC — likely making it the most valuable single-property asset in Irvine Co.’s extensive portfolio.
In OC, its most valuable asset is believed to be The Resort at Pelican Hill, which real estate watchers believe could fetch up to $1.5 billion were it ever to be sold.
Bren ranks No. 1 on this week’s list of OC’s Wealthiest, with a fortune the Business Journal estimates at $18.3 billion, our highest-ever valuation for the executive, who turned 92 in May. See page 14 for more.
$200M Revamp
The MetLife buyout comes after a multi-year, $200 million investment in the skyscraper.
Upgrades included “a significant lobby renovation, new premium dining experiences, a state-of-the art health & wellness center, a conferencing facility, an expansive landscaped terrace and public art exhibits,” said brokerage CBRE, which leases some 180,000 square feet at the tower.
This month, CBRE was named the leasing agent, property and asset manager for the buildings.
“We are immensely proud of our two-decade-long stewardship of 200 Park Ave., our redevelopment and transformation of this iconic landmark, and the significant returns we have achieved for our investors,” Speyer said in a statement.
“At the conclusion of the redevelopment, our joint venture partner, the Irvine Co., informed us they will be exercising their contractual right to buy our remaining equity and take control of the property as per our 2014 joint venture agreement. We are grateful for their partnership these past years and wish them all the best for the future.”
