NGKF is pleased to announce that it represented Red Hill Covenant Group, LLC, in the recent sale of 17000-17040 Red Hill Avenue in Irvine, Calif., for $26.5 million. The property houses the corporate offices of Pacific Dental Services, LLC.
“This is one of a very few large, creative office buildings located in the IBC,” said Scott Read, executive managing director in NGKF’s Newport Beach, Calif., office, who represented the seller along with Michael Kane, executive managing director in NGKF’s Los Angeles office. “It’s a state-of-the-art creative office building with a secure, primary tenant, which makes it an attractive asset to own in this marketplace; consequently, we received strong interest from numerous potential buyers.”
The 118,086-square-foot Irvine Business Complex (IBC) office property-previously an old manufacturing facility-is primarily leased to Pacific Dental Services, LLC, which has occupied the building since the completion of construction 18 months ago. The building and site went through a complete renovation, and now features numerous characteristics of creative office properties, including: an indoor/outdoor patio amenity, indoor plants and trees, extensive use of natural light from skylights and solar tubes, high ceilings, an open, collaborative design and all-surface parking. It also offers direct frontage on two of the main arteries in the IBC, Red Hill Avenue and Alton Parkway.
“The area is poised for growth after adding 22,600 new jobs last year, generating long-term demand for space,” said Mr. Kane. “Combining that with limited speculative office development in the pipeline creates tremendous upside for investors in the area.”
The Orange County office market has experienced an influx of institutional investors as the market fundamentals continue to strengthen. The market in the second quarter posted 1.1 million square feet of positive net absorption, the most since the third quarter of 2005. The vacancy rate dropped to 13.3 percent from 13.6 percent in the first quarter, and Class A rents in the Airport submarket where Irvine is located recorded a 6.2-percent increase year-over-year.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets. For further information, visit www.bgcpartners.com.