March 1, 2022 9:00 AM
Newmark[1]
announced it has arranged the sale of 7 Corporate Park, a 37,177-square-foot, creative office asset in Irvine, California for $15.56 million or $418 per square foot. Newmark Executive Managing Director Paul Jones, Co-Head of U.S. Capital Markets Kevin Shannon, Director Brandon White
and Senior Financial Analyst Liam Ogburn, in partnership with Executive Managing Director Sean Fulp and Managing Directors Ryan Plummer and Mark Schuessler, represented the seller, Kelemen Company, an Orange County-based property, asset, and project management firm specializing in commercial real estate. The buyer was an undisclosed private high-net-worth individual.
“Located in the amenity-rich IBC submarket, 7 Corporate Park offers the new owner a stabilized investment with very little tenant rollover over the next few years,” said Jones. “In addition, the new ownership has the opportunity to add further value with the lease-up of the one remaining vacant suite.”
White added, “The excellent building reposition has resulted in a high-quality asset with great credit and WALT.”
7 Corporate Park is part of a five-building creative campus known as The Parc, which features on-site amenities including a coffee bar, outdoor tenant lounges and multiple open-air patios. In 2019, the campus underwent a transformational capital plan with major improvements including new lobbies, updated corridors, renovated restrooms, drought-resistant landscaping, LED lighting upgrades and new roof with solar panels. At the time of sale, 7 Corporate Park was 96% leased to nine tenants with 6.1 years weighted average lease term remaining.
The property is situated near the intersection of Alton and Barranca Parkways in Irvine, offering convenient access to numerous dining and shopping amenities. The dense, mixed-use area features 16,099 multifamily units, 3,396 hotel keys and 1,647 retails shops and restaurants within a two-mile radius of the property. The location offers convenient access to the 405 Freeway and California State Route 55 and is just a 12-minute drive to John Wayne Airport.
According to Newmark Research, sales volume for Orange County office assets was particularly strong in 2021, marking the highest volume since 2017 after several large deals closed during the fourth quarter. The office leasing market is on the path to recovery with occupancy continuing to improve. Vacancy increases have slowed, sublet availability is trending down, supply has remained in check and rental rates are holding strong, all of which set the stage for a healthy recovery for Orange County’s office market.
[1] Dba Newmark Knight Frank in California
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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