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5/23/14
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In a big OC office buy, Prudential Real Estate Investors has purchased One Pacific Plaza, a three-building, 384.3k sf office complex in Huntington Beach. The property was sold by Lincoln Property Company and partner GEM Realty Capital for $93.6 mil, or around $244/sf.
Located at 7755 Center Ave, adjacent to the 405 Fwy near the intersection of Edinger Ave and Beach Blvd, One Pacific Plaza is a Class A complex that consists of a 12-story main tower and two six-story mid-rise buildings. Its flexible floor plates allow for single or multiple tenant configurations and a parking ratio of 4.2 spaces per 1,000 square feet.
Lincoln Property Company and GEM Realty Capital acquired One Pacific Plaza in October 2011 through a receivership sale and made significant upgrades to the building, including remodeling the lobby, elevators and updating the property’s common areas. The team also created new outdoor courtyards with seating areas. At the time of the acquisition in 2011, One Pacific Plaza included the adjacent 24-Hour Fitness center and Italian restaurant Buca Di Beppo; both were sold during Lincoln’s ownership.
Over the past three years, Lincoln boosted occupancy from 60 percent to over 80 percent by leasing 205k sf, including 120k sf of new/expansion leases. One Pacific Plaza now enjoys a diverse tenant roster of more than 40 local and national tenants. The largest tenants include the headquarters of popular restaurant chain BJ’s Restaurants, as well as Health Net of California and Managed Health Network, Inc.
“This was a strategic acquisition of a ‘broken’ and distressed asset that we were able to stabilize in less than three years,” said Kevin Hayes, Senior Vice President at Lincoln Property Company. “We focused on driving premium lease rates in a location-driven market, which required a nuanced understanding of our leverage in each situation. We accomplished this while addressing significant deferred maintenance and upgrading the property to solidify its status as a Class A asset.”
Prudential will retain Lincoln as the property manager moving forward. Eastdil Secured brokered the transaction.
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