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Friday, Dec 9, 2022

Homebuilder TRI Pointe Moves Local Division

Irvine-based homebuilder TRI Pointe Group Inc. is moving its Southern California division closer to some of the projects it has under way on the Irvine Ranch.

The homebuilder, whose market value is about $1.9 billion, recently signed a lease for a little more than 20,000 square feet of office space at 5 Peters Canyon Road near the Irvine Marketplace shopping center, according to brokerage data.

The office is a multitenant building near the intersection of the Santa Ana (I-5) Freeway and the southern end of the 261 Toll Road next to the local operations of Kia Motors America.

TRI Pointe’s Southern California operations will move into the new space, according to TRI Pointe Chief Executive Doug Bauer.

The lease starts in November, CoStar Group Inc. records show.

The 156,000-square-foot building is owned by an affiliate of Boston-based TA Associates, whose local offices are in Newport Beach.

The location will put TRI Pointe’s regional operations closer to projects it’s selling in North Irvine. It currently is building homes at Orchard Hills and Stonegate, both Irvine Company developments.

TRI Pointe is keeping its existing headquarters at Google Center in Irvine, Bauer said.

The company has occupied space at the Google Center—an airport-area complex previously known as Impac Center—since 2012, when it took over space originally built largely for defunct homebuilder John Laing Homes.

It later moved to a different building on the five-building campus on Jamboree Road that the Business Journal reported last week to be on the sales block.

The owners of the 573,000-square-foot Google Center campus quietly listed the property for sale a few weeks ago and are seeking more than $250 million for it, according to multiple real estate sources.

The local office of Cushman & Wakefield Inc. has the listing for the campus, according to the sources.

The property includes four midrise offices and a restaurant and is close to the Irvine and Newport Beach city line. Its newest office, a 140,000-square-foot building at 19510 Jamboree Road, holds Google Inc.’s local operations.

The campus also has been referred to as the Scholle Center over the years. It was more recently called Impac Center because Impac Mortgage Holdings has had its headquarters at the property’s 19500 Jamboree Road building for close to a decade.

Impac’s lease initially ran about 210,000 square feet, although it had subleased about 90,000 square feet of that since shrinking its operations following the last recession.

Impac earlier this year amended its lease to give back the three floors it was subleasing while extending its lease for the remaining space on another three floors until 2024.

The monthly rent for the lower floor Impac will occupy starts at $2 per square foot under the new lease. The upper two floors have monthly rents starting at $2.50 per square foot, according to regulatory filings.

Sales Plans

Two nontraded real estate investment trusts run by Newport Beach-based KBS Realty Advisors are proceeding with potential sales of their assets.

The real estate investment company’s two longest running nontraded REITs, KBS REIT Inc. and KBS REIT II Inc., announced in February that they’d hired New York-based investment banker Evercore Group “to explore the availability of strategic alternatives.”

Last month the REITs took another step forward in the process, saying that while they continue “to explore strategic alternatives for the company, it has determined that it would be in the best interests of the company and its stockholders to market” their assets for sale.

The REITs have several billion dollars’ worth of properties, primarily offices and industrial buildings, under ownership.

It hadn’t been determined whether the two funds will sell individual assets, a small portfolio of buildings, or their entire holdings, according to a late-May announcement.

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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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