CBRE Announces Sale of Orangewood Office Park in Orange County, CA to Waterford Property CompanY for $18.7 Million
LOS ANGELES, CA – CBRE announced the sale of Orangewood Office Park in Orange, CA, to Waterford Property Company/Cross Harbor Capital for $18.7 million.
CBRE’s Anthony DeLorenzo, Gary Stache, David Dowd and Doug Mack represented the seller, a real estate investment trust, in the transaction. This transaction completes the company’s planned disposition of 705,000 square feet of office space in Orange County.
Located at 2100 & 2200 W. Orangewood Ave, the two-story property consists of two buildings totaling 107,073 square feet. Tenants at the park include Sherwin-Williams, Networked Insurance Agents, Branded Group Inc., Outfront Media LLC and Primevalue Technology Corp. The office park sits within the dynamic stadium office market, featuring one of the lowest vacancy rates and highest rent growth rates in the area.
“This property presents a smart deal as it was priced significantly below replacement cost in a high-barrier-to-entry market,” said DeLorenzo. “In-place rents at the building provide a steady income stream while giving the new owner time to consider renovations and elevate this campus into a creative office space.”
Landlords that invested heavily in renovations and amenities pushed rents upward, and tenants that viewed real estate as a differentiator for employee recruitment and retention paid more, according to CBRE research. The market further diversified with expansions from technology and financial service companies.
Real estate values across Southern California have been rising, and CBRE’s Investor Intentions Survey for 2018 put the Greater LA and Orange County region at the top of the list for the third year in a row. Orange County’s office properties have been in particular demand. The average asking lease rate for office space in the county increased 4.3% to $2.94 per sq. ft. per month, driven by new completions, remodels and increased demand for creative space, according to the latest research by CBRE.