German investment giant Deutsche Asset & Wealth Management, one of Orange County’s larger office owners, has made its first local real estate purchase in seven years.
The firm, which has nearly $1.3 trillion in assets under management, recently closed on the purchase of Tustin Executive Center, a 90,932-square-foot, four-story office building about a block east of the Costa Mesa (55) Freeway on 17th Street.
It paid $20.4 million, or nearly $225 per square foot, for the building, which is about 93% leased. Tenants include Kaiser Permanente, MetLife, Springfield College, Coreland Cos. and Sunwest Bank.
Monthly rents there are about $2.15 per square foot, according to CoStar Group Inc. records.
The deal was brokered by CBRE Group Inc.’s Paul Jones, Bob Smith, Gary Stache and Anthony DeLorenzo.
Brokerage records show the building’s prior owners were a venture between the Illinois State Board of Investment and Clarion Partners in New York.
The buyers “saw Tustin Executive Center as an opportunity to purchase a building in excellent condition in a recovering Orange County office market where they have an existing portfolio,” Smith said. “This is their first office purchase in Orange County since 2007.”
Deutsche Asset’s local real estate holdings are owned and operated under the RREEF name. It has large office holdings in Aliso Viejo and Costa Mesa, among other areas.
The sale is the second notable office sale on 17th Street recently. Last December, Tustin Centre, the two-building Santa Ana office campus on the opposite side of the Costa Mesa Freeway, sold for about $65 million to CBRE Global Investors, an investment unit of L.A.-based brokerage CBRE Group.
Yorba Linda Loan
Beverly Hills-based Etco Homes has gotten funding to move ahead with a 159-unit apartment development to be built in Yorba Linda.
The builder recently got a $6.5 million bridge loan from Karlin Real Estate, a Los Angeles-based real estate investment firm, to move ahead with the proposed project, called Lakeview.
Construction is expected to start on the development this year. It’s on the southeast corner of Lakeview Avenue and Mariposa Way next to Yorba Linda Lakebed Park.
The bridge loan will give Etco Homes time to complete the permitting process and obtain construction financing, according to Karlin officials.
“Housing in Yorba Linda is comprised largely of single-family residences, with only 15% dedicated to rental units,” said Larry Grantham, managing director of real estate lending for Karlin. “With such limited supply and a high barrier to entry for new product, there is tremendous demand for a product like Lakeview.”
Chino Hills Offering
The Shoppes at Chino Hills, a 388,000-square-foot shopping center owned by a local investment group, is up for sale.
Chino Hills Mall LLC, a Newport Beach-based family trust, paid $94.5 million in 2010 for the then-financially distressed mall, one of the Inland Empire’s newer and better-known shopping centers.
The LLC is headed up by Manouchehr Moshayedi and Mehrdad “Mark” Moshayedi, founders of Santa Ana-based storage device maker sTec Inc., which was bought last year by Irvine-based Western Digital Corp. for $340 million.
The Shoppes, which is 94% leased, is expected to fetch close to $150 million this time.
Ryan Gallagher, Bryan Ley and C.J. Osbrink with the Irvine office of brokerage Holliday Fenoglio Fowler have the listing for the center.
Lincoln Property Awarded Contract
The Santa Ana office of Dallas-based
Lincoln Property Co. has been selected
as the property manager for the Anaheim Regional Transportation Intermodal Center, the $188 million hub being built between Honda Center and Angel Stadium in Anaheim.
The project, on 16 acres of city-owned land, is scheduled to open toward the end of the year.
Lincoln, among other property management duties, said on its site that it has begun leasing efforts for the 13,000 square feet of retail space in the center that will eventually include two full-service restaurants, shops, and several interior and exterior retail kiosks.