Newport Beach-based Olen Properties Corp., Orange County’s second-largest commercial property owner, has snapped up a business park in Mission Viejo.
The real estate investor and developer recently bought the Mission Viejo Commerce Park, a nine-building complex at 23312 Madero Road, according to real estate sources.
Terms of the all-cash deal weren’t immediately disclosed.
Cost
The office and warehouse buildings at the complex total about 146,000 square feet and have a replacement cost of about $29.7 million, or about $203 per square foot, according to marketing materials.
The multi-tenant property, which was sold by Boston-based TA Associates Realty, is unlikely to have traded hands at a price that high. Last year the business park was assessed at $10 million, according to tax records.
It’s the second property in Mission Viejo for Olen, according to the company’s website. It also owns the Mission Corporate Plaza, a 131,193-square-foot office park on Las Ramblas Road, just off the San Diego (I-5) Freeway.
Assets
Olen owns more than 7 million square feet of office and industrial space, much of it in Orange County. The company, owned by billionaire Igor Olenicoff, is believed to be the biggest office landlord in OC besides Newport Beach-based Irvine Company.
While the company owns a few prominent office towers here and in Chicago, a large portion of its office portfolio is made up of low- and midrise business parks similar to its latest purchase.
One of Few
The Mission Viejo deal is one of only a few that Olen is known to have made in OC in the past few years.
The company also has been working on a few smaller developments of late, including Olen Parkcenter Plaza, a roughly 30,000-square-foot multi-tenant office project in Santa Ana that’s slated to open this month, according to data from marker tracker CoStar Group Inc.
The Mission Viejo Commerce Park was about 86% leased at the time of the sale to Olen. Spaces at the business park run from about 1,000 to 6,500 square feet.
Rent
The 9.5-acre complex was built in 1986, and currently brings in about $1.3 million in rents annually, according to brokerage materials.
Rents at the complex were about 38% higher at the peak of the market, in 2007, than they are now, according to the marketing materials for the project.
The property was sold by Dan Vittone, Al Pekarcik and John Griffin, brokers with the Irvine office of Voit Real Estate Co. in Newport Beach.
The business park is a few blocks away from a Target, and an adjacent 7.4-acre site along Los Alisos Boulevard that the retailer’s parent, Minneapolis-based Target Corp., sold last year to Miami-based Lennar Corp.
That land now is the site of The Ridge, a 144-unit housing development built by Lennar.
Attention
TA Associates Realty, which sold the Mission Viejo property to Olen, has been getting attention for its buys in OC of late. In July, it paid close to $52 million for 3 MacArthur, an 11-story office building just off the Costa Mesa (55) Freeway.
