November 4, 2021 9:00 AM
Newmark[1]
announced that it has completed the sale of 1301 Dove, a 214,858-square-foot, 10-story, Class A office building located at 1301 Dove Street in Newport Beach, California for $64 million, or $298 per square foot. The property traded in an off-market transaction.
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. The buyer, a joint venture between Ocean West Capital Partners and Rockwood Capital, was looking for the rare opportunity to acquire a value-add Class A office building with a Newport Beach address.
“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.
Shannon added, “1301 Dove allowed the buyer to capitalize on a rare opportunity to purchase a value-add deal that has also benefited from a recent comprehensive repositioning plan.”
Newmark Vice Chairman David Milestone and Senior Managing Director Brett Green arranged the financing on behalf of Ocean West and Rockwood Capital.
Originally built in 1980, the property underwent a transformational $11.5 million 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.
“We are thrilled about the off-market acquisition of 1301 Dove and thank the Newmark team for providing us with the opportunity” said Ryan Tucker, Principal with Ocean West Capital Partners. “Our attractive basis and planned additional renovations, including a state-of-the-art tenant fitness center and activation of a 7,000 SF of outdoor patio space, will allow us to aggressively pursue tenants desirous of the only customized 100,000 SF block of contiguous space in Newport Beach with building top signage and private outdoor patio space, an ideal post-Covid work environment.”
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. The accessible location coupled with the presence of University of California Irvine has continued to attract a highly educated and skilled workforce to the area.
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.
[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 $2.2 billion for the trailing twelve months ending June 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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