One of the larger buildings along Von Karman Avenue in the Koll Center Newport office campus has been put on the sales market.
4350 Von Karman Ave., a 68,425-square-foot building located across the street from The Pacific Club, was recently listed for sale at a price of about $22.4 million, or $329 per square foot.
The four-story building overlooks a small lake and is about 78% occupied. Much of the empty space is on the building’s top floor, which could entice potential owner-users, according to brokers with the Irvine office of Jones Lange LaSalle who are marketing the property.
The office counts tenants including LNR Property Corp., iStar Financial, and businesses affiliated with the investment and foundation work of Hot Pockets creator Paul Merage.
One of those Merage affiliates, operating under the 4350 Von Karman LLC name, paid $13 million for the office in 2003, according to property records.
The property has a replacement value of about $31.3 million, according to marketing material from Jones Lange LaSalle, whose Steve Economos, Geoff DeWolf and Andy White have the listing for the office.
Nearby residential development work along Jamboree Road, planned by Uptown Newport LP, is expected to add to the property’s long-term valuation, according to the brokers.
A notable number of Von Karman Avenue buildings located within a few blocks of each other have been put on the market over the past two years.
Other prominent offices on the sales block include the current headquarters of William Lyon Homes, at 4490 Von Karman, which was listed for sale earlier this year at about $11.2 million.
Logistical Buy
Regal Logistics, a Fife, Wash.-based third party logistics provider, said it has bought a new facility in Garden Grove for its operations.
The company, which distributes a variety of products to retailers in large volumes, said it bought a 120,000-square-foot industrial property at 12101 Western Ave., located a few blocks north of the Garden Grove (22) Freeway.
The building is said have traded hands for a little under $12.8 million, or about $102 per square foot. A Florida-based LLC was reported to be the seller, according to brokerage data.
The property was first listed for sale at about $13.8 million, according to marketing materials for the building.
The industrial building is located on a 6.2-acre parcel, and features 14 dock doors and a gated yard, among other features. The building was last used by a moving and relocation company, O’Neil Moving Systems Inc.
Regal said the new facility will open for business in January. The company said it now has 1.6 million square feet of distribution space in the Pacific Northwest, the Southeast U.S. and Southern California.
Charlotte Complex
An affiliate of Newport Beach-based KBS Realty Advisors is paying $45.8 million for a recently built apartment complex in North Carolina.
The company’s KBS Legacy Partners Apartment REIT Inc., one of five non-traded real estate investment trusts that KBS currently operates, said late last month it was buying Wesley Village, a 301-unit apartment complex in Charlotte.
The price works out to about $152,000 per apartment for the complex, which was built in 2009 and totals about 308,000 square feet. The property is about 92% occupied, and brings in rents of about $3.8 million, according to regulatory filings.
KBS said on Oct. 24 that it had made a $1.3 million deposit on the property for the sale, which has yet to close.
The REIT, which KBS operates in partnership with Foster City-based Legacy Partners Residential Realty, said it intends to fund the purchase of Wesley Village with proceeds from a mortgage loan from an unaffiliated lender, as well as proceeds from the REIT’s ongoing public offering.
The REIT has raised about $95 million as of August.
The North Carolina property was built and is being sold by an affiliate of Charlotte-based Wood Partners, an apartment developer.
