Newmark has completed the $73.5 million sale of Element, a 160,000-square-foot corporate campus, occupied by Glaukos Corporation (NYSE: GKOS), a publicly traded ophthalmic medical technology and pharmaceutical company.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Paul Jones and Ken White, and Senior Associate Brandon White represented the seller, a joint venture between CrossHarbor Capital Partners and Waterford Property Company. The buyer, IRA Capital, acquired the campus through its joint venture with a Middle East-based capital partner. In 2019, Glaukos selected Element to serve as its new corporate and R&D headquarters and signed a 13-year, NNN lease, in addition to purchasing excess land for future development and expansion.
“Cross Harbor and Waterford Property Company did a tremendous job repositioning the campus,” said Jones. “The buyer was attracted to Glaukos’ long-term stability, credit and commitment to the campus. This transaction marks the only office transaction of this size to close in Orange County since the COVID-19 pandemic.”
“When we originally acquired the former campus headquarters of QLogic in Aliso Viejo, our team put together a business plan to turn the vacant campus into a state-of-the-art creative office project,” said John Drachman, Co-Founder and President of the Commercial Division at Waterford Property Company. “We spent millions upgrading all aspects of the project, and we were excited when Glaukos decided to make the campus its new corporate headquarters. The project is a strong representation of the type of office investments Waterford anticipates acquiring in this next cycle.”
CrossHarbor Capital Partners and Waterford Property Company have partnered on multiple value-oriented and opportunistic office transactions in Southern California during the past four years.
“Waterford has been a great joint venture operating partner for us,” said Eric Boyd, Managing Director at CrossHarbor Capital Partners. “When introduced to this transaction, we moved rapidly to diligence and closing of the acquisition in an all-cash off-market format which enabled us to secure a very favorable basis. The business plan was thoughtfully executed, and the property was well-positioned for sale.”
Newmark’s Shannon added, “This is yet another example of foreign capital’s attraction to single-tenant, long-term net-leased U.S. office assets – a prominent trend we are seeing around the country.”
“Among the key factors in our decision to purchase the asset were Element’s prime location within the budding Aliso Viejo life-science market and Glaukos’ substantial capital investment and long-term commitment to the site” said Jay Gangwal Principal at IRA Capital. “Our company feels strongly that leading healthcare companies will continue to benefit from technological shifts and demographic trends. As a result, we have been strategically deploying our capital, and this acquisition aligns nicely with our investment objectives considering Glaukos’ dominant position in the global ophthalmic market.”
The property, located at 26600, 26650 & 26700 Aliso Viejo Parkway, consists of three, two-story buildings, spanning over 12 acres. The seller successfully executed a comprehensive renovation plan, including an upgraded façade, lobby, common areas and exterior landscaping.
Element is ideally located off the 73 Freeway and minutes from the I-5 and I-405 Freeways. The campus is also proximate to hotels and multifamily living including Homewood Suites by Hilton, Vantis Apartments and City Lights Town Center Apartments as well as being within walking distance to Aliso Viejo Town Center, a 1.5 million-square-foot retail center.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.