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11/09/21
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A 214.9k sf, Class A office building traded for $64 mil, or $298/sf, in an off-market transaction. The 10-story building, located at 1301 Dove St, was acquired by a joint venture between Ocean West Capital Partners and Rockwood Capital.
Originally built in 1980, the property underwent a transformational $11.5 mil capital renovation plan in 2018 that included a complete lobby upgrade, tenant lounge/conference center implementation, upper floor common area renovations, elevator cab upgrades, EV charging station additions, base building upgrades, site improvements and tenant improvements including a speculative suites program. With the known upcoming vacancy of Alliant Insurance, the multi-tenant property is 49% leased, offering the new owner the ability to market premier building-top signage opportunities with unique to the market private outdoor patio space.
The property’s location in the Greater Airport Area submarket offers accessibility throughout the greater Orange County metro. Commuters can easily reach the Airport Area’s commercial nodes via arterial freeways including Interstate 405 and California State Routes 55 and 73. The location also offers easy access to the John Wayne Airport. It is also near the University of California Irvine, which has continued to attract a highly educated and skilled workforce to the area.
According to Ryan Tucker, Principal with Ocean West Capital Partners, planned renovations to the property include the addition of a state-of-the-art tenant fitness center and activation of a 7k sf outdoor patio space. These upgrades are expected to boost their efforts to recruit a tenant desirous of the only customized 100k sf block of contiguous space in Newport Beach with building top signage and private outdoor patio space.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Paul Jones, Brunson Howard and Ken White and Director Brandon White represented the seller, a Global Real Estate Investment Advisor. Newmark Vice Chairman David Milestone and Senior Managing Director Brett Green arranged the financing on behalf of Ocean West and Rockwood Capital.
“With an address that boasts the prestigious Newport Beach name, along with the ideal location in the Greater Airport Area submarket and a fully renovated Class A building, this property will reap the benefits of being able to draw on two major demand drivers: tenants desiring to land in Newport Beach and those that wish to office in the CBD of Orange County,” said Jones.
According to Newmark Research, the Orange County office market is poised for a post-pandemic recovery given its strong demographics, growing tech base, and diverse occupancy pool that spans multiple industries. Sublet availability in the market has likely peaked, and leasing fundamentals are expected to improve later this year into 2022 as employees return to the office and more companies begin to execute on long-term real estate needs.
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