Kilroy Realty Corp. has sold one of its few remaining office buildings in Orange County to a San Francisco-based real estate investor that’s looking to expand its holdings in Southern California.
Swift Real Estate Partners, a privately held investor founded four years ago, last week announced its purchase of 111 Pacifica, a three-story office in the Irvine Spectrum.
It’s the first purchase in Southern California for Swift, which raised $330 million earlier this year with an eye on buying upward of $1 billion in value-add properties on the West Coast.
The company is on the lookout for more deals in OC and other parts of Southern California, according to Malcolm O’Donnell, a partner at Swift who is responsible for the company’s Southern California region.
Terms of the 111 Pacifica sale were not immediately disclosed. Los Angeles-based Kilroy paid just under $10 million for the 67,500-square-foot building in 1997.
The local office of JLL helped broker the sale to Swift.
The Pacifica building was one of four OC properties remaining in the portfolio of Kilroy, one of the largest office property owners on the West Coast.
The company, which had a recent market value of about $5 billion, said about a year ago that it planned to sell all of its area properties, with the exception of the 2211 Michelson office tower in Irvine, one of the higher-end buildings near John Wayne Airport.
The dominance of Newport Beach-based Irvine Company when it comes to high-end buildings in OC was cited by Kilroy executives at the time as a reason for the company largely exiting the market.
Kilroy exited the OC industrial market at the end of 2012 after selling its nearly 3.4-million-square-foot local portfolio in a deal valued at nearly $500 million.
Another building that Kilroy still owns in Orange, at 999 W. Town & Country Road, is also up for sale. The 98,500-square-foot office is fully leased to Aecom Technology Corp., a Los Angeles-based provider of professional technical and management support services.
CoStar Group Inc. records list the Orange office, which also includes additional land that’s entitled for a 65,370-square-foot medical office building, as being in escrow.
Kilroy paid a reported $22.2 million for the West Town & Country building in 2010.
The last local property owned by Kilroy besides the offices is a development site near the intersection of Von Karman Avenue and Alton Parkway in Irvine.
Plans for a 434-unit residential development, including a mix of for-sale and rental units, have been filed with Irvine’s planning commission for the 9-acre site, which previously held an older industrial building that was demolished a few years ago. The land is expected to be sold soon to a residential developer.
