The owner of Mission Ridge office complex in Mission Viejo sold the property March 12 for $32 million, taking a loss on the property it bought for nearly $55 million in 2013.
Barker Pacific Group and Kingsbarn Realty Capital bought the property from the investment firm Barings in El Segundo. The complex was 55% leased at the time of the transaction, according to CBRE.
Mission Ridge has 232,000 square feet of leasable space in two, four-story office buildings at 27101 and 27201 Puerta Real. Completed in 2000, it was renovated inside and out in 2021.
Tenants include Partners Bank of California, Wells Fargo Advisors, Stifel, Nicolaus & Company, Fidelity, Maguire Insurance, US Investment Corp, and Charles Schwab.
“We are acquiring the highest quality office asset in the submarket for an extremely compelling basis, which will allow us to compete favorably in the marketplace,” said Mark Handin, managing principal at BPG.
BPG said the Mission Ridge acquisition brings its office portfolio to more than 1 million square feet in Orange County.
This deal marked the third joint venture in Orange County for the firm and Kingsbarn.
In 2021, the venture bought Fullerton Towers, and then in 2023 the venture scored a deal for the 13-story twin Griffin Towers, which it bought for $82 million. Blackstone bought the Santa Ana property at 5 and 6 Hutton Centre Drive for $129 million in 2014, according to CommercialObservor.com.
Even though the office market faces post-pandemic vacancy woes, the Mission Viejo campus will remain an office space.
“We believe in the future of high-quality office environments with great locations and robust amenities … regardless of the current market challenges for owners of office building,” said Will Dickinson, vice president at BPG.
As in Mission Viejo, investors are still finding deals in Orange County office spaces.
According to a 2024 fourth-quarter office market report by NAI Capital, sales were down 33.2% compared with year-end 2023. Sale prices also were down 23.4% quarter over quarter to $212 per square foot.
The good news for landlords: Occupied office space increased 353,370 square feet, tightening vacancy to 12.3%, a 100-basis-point decline year-over-year, NAI’s J.C. Casillas wrote. That brings total occupied space to more than 110 million square feet.
Costa Mesa’s Victoria Plaza sells for $7.2M
Newport Victoria Plaza, a 43,249-square-foot office complex at 2183 Fairview Road in Costa Mesa, traded hands March 12 for $7.2 million, according to CBRE.
The brokerage represented the seller, which it did not identify. The buyer was identified in public documents as Royal Tulip Investments, according to PropertyShark.
“The opportunity to purchase a low-rise office property in a fundamentally strong market like Costa Mesa is rare,” said Anthony DeLorenzo at CBRE.
Placentia office plaza sells for $5.75 million
The Cobblestone professional office building in Placentia sold in recent weeks for $5.75 million.
Marcus & Millichap did not identify the seller of the two-story, 23,500-square-foot property at 201-261 Lakeview Ave.
“The seller had owned and managed the property for over 28 years and our team was able to show them how they can sell this asset to exchange into a less management-intensive product type and increase their cash flow by at least three times,” said Alex Mobin, at Marcus & Millichap.
The buyer, also not identified, was an owner/user who use it for medical use once the building is renovated, Mobin said.
The buyer was represented by Keller Williams.
Stanton storage site adding freight service
A 2.59-acre parcel with two buildings in Stanton sold March 6 for $9.8 million, according to DAUM Commercial Real Estate Services.
Dynamic Export LLC will use an existing conditional use permit to add trucking and freight to the site, DAUM said.
“This was a rare opportunity for our client to acquire a site with low building coverage of approximately 20%, for use as a truck terminal,” said Michael Chase at DAUM.
The brokerage’s Capital Markets Group represented the buyer, and its Newport Beach office team repped the seller. Brokers declined to identify either of them.
The industrial outdoor storage site at 11121 Dale St. includes 112,820 square-foot parcel that is fenced and paved. The larger freestanding building is 19,375 square feet while the smaller building is 4,000 square feet.
On the move
Ayda Kach recently joined Hanley Investment Group Real Estate Advisors as a vice president. She specializes in investment sales, leasing and repositioning assets and most was a managing director at PacWest Management.
The real estate roundup is compiled from news releases and written by Business Editor Samantha Gowen. Submit items and high-resolution photos via email to sgowen@scng.com . Please allow at least a week for publication. All items are subject to editing for clarity and length.