Completed in June 2000, the multi-tenant office building encompasses about 107,000 sf and includes a parking garage. Occupied by seven tenants, it is located at 895 Dove St.
The transaction, which was brokered by Lee & Associates and Grubb & Ellis, has occurred in conjunction with a $28-million office acquisition in Alexandria, VA.
Glenborough is funding the purchases through the disposition of seven properties located primarily in non-core markets. These disposition properties are being sold at an average price of about $7.5 million, according to Robert Batinovich, Glenborough's chairman and CEO.
"This combination of dispositions and acquisitions embodies everything we are trying to accomplish in continuing to refine our portfolio," says Batinovich. "Both acquisition properties are in development-constrained, in-fill locations, with strong growth potential. In addition, the initial going-in yield on the acquisitions is virtually identical to the going-out yield on the dispositions, so we made a dramatic improvement in the portfolio without compromising near-term earnings."
Newport Beach's office market finished up the third quarter with a total of 88,587 sf of vacant space. The overall occupancy level stood at 11.7%, according to Cushman & Wakefield statistics.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
