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LA PALMA, CA—An East Coast-based pension-fund advisor has sold Centerpointe La Palma, a 525,560-square-foot, 10-building business park here, to a joint venture between Greenlaw Partners and Westbrook Partners. The asset includes three mid-rise office buildings, six single-story R&D buildings and one single-story retail strip center.
The buyer declined to comment further on its plans for the property. As GlobeSt.com reported in August, Wilbur Smith, CEO and president of Greenlaw Partners, said during a mixed-use development panel during RealShare Orange County that it's important to be mindful of which amenities work and can be successful in mixed-use projects, particularly in horizontal ones, which are more common in the Orange County market than vertical ones. Moderator Randolph Mason, CCIM, a partner with Commercial Realty Specialists, asked Smith which amenities in particular are working, and Greenlaw's Smith gave the example of LBA's Park Place, which he said, “knocked it out of the park” with adjacent uses. The walkability factor of apartments near Whole Foods is a plus in a development his firm is adding in Brea, CA, he said, adding, “We are seeing a lot more walkability in Orange County than we did before, thanks to mixed-use.”
Centerpointe La Palma was built in 1986, with renovations occurring in 2015 and 2016. The 24.24-acre property is located at on Centerpointe Dr., with easy access to the 91, 5 and 605 freeways in North Orange County. At 89% leased at the close of escrow, the property features 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.
NKF's capital-markets president, West Coast Kevin Shannon, senior managing director Paul Jones and director Blake Bokosky represented the seller, while the buyer was self-represented. This transaction is the fifth sale greater than $50 million in Orange County this year for the 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.
According to Jones, “Sizable institutional-quality Orange County business campuses like Centerpointe La Palma rarely become available to investors. 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.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
