Newmark has announced the sale of The Hive, a recently extensively repositioned three-building 181,822-square-foot coastal creative office campus in Costa Mesa, CA. The multi-tenant property is 82 percent occupied by five tenants and is situated on a 14.25-acre land parcel, of which just over three acres of land is being used as the Los Angeles Chargers practice field and is currently entitled for an additional 65,000 square feet of commercial development.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Paul Jones, Managing Director Blake Bokosky, and Executive Managing Directors Ken White and Brunson Howard represented the seller, a joint venture between Goldman Sachs and Steelwave. The buyer is global real estate investment manager Invesco Real Estate who was self-represented.
Originally developed in 2003, the property is located at 3333, 3335 and 3337 South Susan. The seller acquired the property in September 2015 and invested approximately $22 million into transforming the project into a creative, Class A environment. The project features flexible and open floor plans, a new coffee bar adjacent to an outdoor tenant lounge area, state-of-the-art fitness facility with showers and lockers, a conference center and multiple open-air patios with community activities. Tenants include Los Angeles Chargers, Lazy Dog Café, Coding Dojo, Agility Fuel Solutions and Steelwave.
“The Hive is the first office campus of significant size in Orange County to undergo a creative repositioning and be successfully sold. This opportunity received tremendous interest from core capital,” said Jones. “Additionally, there is upside through leasing the remaining vacant space, as well as future development potential for this pioneering location in the Greater Airport Area.”
Jones noted that The Hive is situated adjacent to The Press OC, the former 25-acre LA Times site which will see a significant amount of office and retail redevelopment in the near future, further enhancing the surrounding location.
The property is proximate to the 405 and 55 freeways and is just 10 minutes from John Wayne Airport and is 15 minutes from University of California, Irvine (UCI).
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 16,000 professionals operate from approximately 430 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. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”) (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.
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