Newmark has completed the $106.1 million sale of Centerpointe La Palma, a 525,560-square-foot, 10-building business park in La Palma, CA. The campus, which was 89 percent leased at the close of escrow, includes three mid-rise office buildings, six single-story R&D buildings, and one single-story retail strip center.
Newmark’s Capital Markets President, West Coast Kevin Shannon, Senior Managing Director Paul Jones and Director Blake Bokosky represented the seller, an East Coast-based pension fund advisor. The buyer, a joint venture between Greenlaw Partners and Westbrook Partners, was self-represented.
Built in 1986 with renovations occurring in 2015 and 2016, the 24.24-acre property is located at 1, 4, 6, 18, 20, 22, 24, 26, 28 and 30 Centerpointe Drive with easy access to the 91, 5 and 605 freeways in north Orange County. Centerpointe La Palma offers a diverse mix of tenants, with some of its largest being State of California, Tesoro, Honeywell, United Healthcare, University of Phoenix, and St. Joseph Health. Within the retail portion of the property are several restaurants including Jimmy John’s, Flame Broiler, Panda Inn and Tokyo Grill.
“Sizable institutional-quality Orange County business campuses like Centerpointe La Palma rarely become available to investors,” said Jones. “This asset provides the buyer with immediate scale and a strong, secure and growing income stream, as well as additional value potential through the lease-up of remaining vacancy and the continued conversion of the low-rise buildings to creative office. Additionally, all of the buildings sit on separate parcels providing the buyer maximum optionality and flexibility upon exit.”
The recent renovation conducted by the seller included new, high visibility property signage, LED parking lot light replacements, new landscaping, systems upgrades and contemporary speculative build outs in a number of the vacant office suites.
This transaction is the fifth sale over $50 million in Orange County this year for the Newmark’s Capital Markets West Coast team having recently sold 200 Center and Stadium Towers in Anaheim in June, 4400 MacArthur in Newport Beach in early August, and Pacific Vista in Lake Forest in early September.
Newmark is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, Newmark’s strong foundation makes it one of the most trusted names in commercial real estate. Newmark’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.
Newmark 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 www.bgcpartners.com.