NGKF Capital Markets announces the $108.5 million recapitalization of three high-quality Class A multi-tenant office buildings located in Orange, CA. The transaction includes 600 City Parkway West, a 199,075-square-foot building, 3800 Chapman, a 169,851-square-foot building, and 500 City Parkway, a 70,320-square-foot building.
NGKF Capital Markets President of West Coast Capital Markets Kevin Shannon, along with Senior Managing Director Paul Jones and Executive Managing Director Ken White, represented the existing partnership Greenlaw Partners and Walton Street.
This is a strategic recapitalization for Greenlaw Partners, who successfully executed their business plan by repositioning the three office buildings via capital improvement projects and lease-up. Greenlaw Partners and Walton Street had purchased the buildings separately in 2014 and 2015. Since then, the firm has achieved full occupancy on all three buildings, as well as gaining entitlement for two multifamily development projects on a portion of the existing parcels.
“This provided a unique opportunity to take advantage of a compelling value-add multi-family development site in conjunction with strong cash flows from the existing well-leased office campus. The project provides tremendous future optionality for the new partnership with multiple parcels and food groups,” said Shannon.
An institutional advisor, who is a current partner of Greenlaw Partners on various Orange County projects, recapitalized the partnership and will retain Greenlaw Partners as operating partner going forward.
“Looking ahead, all parties can pursue their business plans and long-term investment strategies with a collection of great central Orange County office towers. Greenlaw’s success to date in fully repositioning the buildings and bringing them to almost full occupancy bodes well for the future of these assets with NOI growth coming from rolling existing tenants to market rents for the renovated product,” said Jones.
Built in 1984, 3800 Chapman is a 100 percent leased, eight-story institutional quality office tower with tenants that include American Advisors Group, Home Depot USA, and the FBI. 600 City Parkway West is a 10-story class A office building that is approximately 97 percent occupied with tenants that include Prospect Medical Holdings, ADOC Acquisition Company, and the Department of Health & Human Services. 500 City Parkway is a four-story class A office building that is 100 percent occupied by tenants that include Old Republic National Title and Reliant Financial Corporation.
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 12,800 professionals operate from more than 370 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., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.