Newmark Capital Markets has announced the $106.75 million sale of The Atrium, a 302,877-square-foot, 10-story trophy office property in Irvine, CA.
Newmark Capital Markets Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Paul Jones, Ken White and Brunson Howard and Managing Director Blake Bokosky represented the seller, Barings Real Estate, part of Barings LLC, acting on behalf of institutional investors. The buyer, Kelemen Company, was self-represented.
Located on 6.12 acres at 19100 and 19200 Von Karman Avenue, The Atrium was built in 1986 and underwent an extensive renovation in 2015. The $5.3 million capital improvement program included upgrades to the atrium lobby, common areas, exterior courtyards, restrooms and elevator cabs and lobbies. The property is 90 percent leased to several tenants including Premier Business Centers and Severson & Werson.
John Kennedy, Western Region Managing Director for the Real Estate Equity group at Barings said: “Our leasing efforts were key. We were able to achieve very strong recent leasing, which well-positioned the property for sale, and allowed us to successfully exit the asset, completing our investment plan.”
“The Atrium was an excellent mark-to-market opportunity in a uniquely designed building attracting both traditional and creative tenants,” said Jones. “The new ownership is planning an extensive interior and exterior renovation, which will further push market rents at the property.”
Jones added, “There continues to be a tremendous amount of both foreign and domestic capital focused on acquiring best-in-class office properties throughout Orange County, and we see this continuing into 2019.”
The Atrium features an architecturally distinctive design, an enclosed 10-story atrium lobby with interior and exterior balconies, 24/7 security and access, a café and ample surface and structured parking. The asset has also been home to Bistango, a world-class restaurant, which is located on the ground floor, since 1988.
The Atrium is less than one-half mile from John Wayne Airport and offers nearby access to State Route 55, Interstate 405 and State Route 73.
This transaction is the fourth sale that is over $100 million since the first quarter of 2018 in Orange County. The Newmark Capital Markets team has represented the sellers on three of those sales.
Barings Alternative Investments (BAI), part of Barings LLC, is a 460+ associate team located across 11 countries that manages $49+ billion* in client capital. BAI seeks differentiated sources of returns by incorporating decades of investment experience in alternative assets offering investors access to a diverse range of opportunities across private equity, real assets, asset-based investments and the four quadrants of real estate. We serve as a trusted partner to clients, leveraging our global presence and robust origination capabilities to identify the most attractive risk-adjusted return opportunities. As a leading global real estate investor and asset manager, the Barings Real Estate team offers a broad range of investment opportunities across the public and private debt and equity markets, investing across property sectors with a focus on global relative value and trend-backed preferred strategies.
Barings is a $306+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients. We build lasting partnerships that leverage our distinctive expertise across traditional and alternative asset classes to deliver innovative solutions and exceptional service. Part of MassMutual, Barings maintains a strong global presence with over 1,800 associates and offices in 16 countries. Learn more, at www.barings.com.
*As of June 30, 2018.
About Newmark Capital Markets
Newmark Capital Markets, operated by Newmark Group, Inc., is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 16,000 professionals operate from approximately 430 offices on six continents.
We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit www.ngkf.com/capitalmarkets.
Newmark Group, Inc., which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), 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 “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 “BGCA”.
Discussion of Forward-Looking Statements about Newmark Group
Statements in this document regarding Newmark Group 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 Group 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 Group’s and BGC’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.