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Friday, Dec 9, 2022

Silicon Valley Lease Gives Irvine Co. Notable Name

Tasseography followers, take note: Amazon appears to be a fan of Irvine Co. office properties.

The Seattle-based e-commerce firm recently signed a 164,000-square-foot deal to occupy space at one of the Newport Beach-based developer’s newest office complexes in the Silicon Valley area.

It will take over one building at the real estate developer’s 1.7-million-square-foot Santa Clara Square campus in Santa Clara, which opened about two years ago, according to local news reports.

The deal is technically a sublease; Amazon is taking a portion of the nearly 410,000 square feet of space that Swedish telecom Ericsson Inc. committed to before the development opened. That company’s since downsized some operations in the region.

News of the Amazon deal was first reported by the Silicon Valley Business Journal.

The estimated $2 billion development mirrors much of what Irvine Co. is developing closer to home in the Spectrum area. In addition to eight midrise office buildings that resemble buildings being constructed at the Quad at Discovery Business Center in the Spectrum, Santa Clara Square also includes an Irvine Co. apartment development with about 2,000 units, and a shopping center. Whole Foods, a recent Amazon acquisition, is the retail center’s anchor tenant.

Amazon occupies about 2.5 million square feet in Silicon Valley, according to local news reports.

The city of San Jose, as well as the San Francisco Bay Area, are each reported to be among the more than 200 North American bidders taking a stab at landing Amazon for its so-called HQ2, or second headquarters, as is Irvine.

Whether any of those California locations have a real shot at landing it and potentially bringing some 50,000 new jobs, is anyone’s guess.

If you’re a gambler, Irish online betting site PaddyPower has listed odds and is taking bets for various cities’ bids. Atlanta is their No. 1 choice, followed by Austin and Boston.

Los Angeles carries 33/1 odds, and no odds are listed for a specific Orange County location, where a joint bid involving multiple Central County cities has been filed, as well as a joint bid by Huntington Beach and Long Beach.

Amazon estimates HQ2 would require about 8 million square feet over the next 15 or so years. A selection is expected next year.

Irvine’s Spectrum-centric bid for HQ2, largely backed by Irvine Co., is being directed not only at Amazon, but also to area residents and businesses.

The Greater Irvine Chamber has sent mailers to locals pitching the city’s bid. It also has a website with the city’s bid and other related information, at www.irvineprimed.com.

Placentia Trade

Placentia Town Center, a 116,832-square-foot shopping center at the intersection of Yorba Linda and Kraemer boulevards, has traded hands.

NewMark Merrill Cos., a Woodland Hills-based retail shopping center operator that runs four other Orange County properties, bought the property in a deal that closed in mid-October.

CoStar Group Inc. records show the property sold for $35.7 million. An affiliate of Oak Brook, Ill.-based Retail Properties of America Inc. sold the shopping center, which was built in 1973 and renovated in 2000.

The center is 96% leased, according to the buyers. It’s anchored by Marshall’s, Ross Dress for Less and CVS.

Brokers in Newmark Knight Frank’s Capital Markets retail division, including Pete Bethea, Rob Ippolito and Glenn Rudy, represented the seller.

NewMark Merrill, which is unrelated to the commercial brokerage, said it was represented in-house with support by Alex Kozakov of CBRE Group Inc.

Pricey Property

Property records show Irvine’s Landsea Homes paid a hefty $25.5 million for its latest local development, a 23-unit luxury townhouse project planned for 1.2 acres next to Lido Marina Village in Newport Beach.

The U.S. arm of China’s Landsea Group, which has a project under way in Lake Forest, bought the site from a unit of Dallas-based Third Palm Capital.

The deal was brokered by Brandon Johnson and Erik Mykletun of Tierra Development Advisors in Irvine.

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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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