The buyer, Sterling America LLC, has paid $3.8 million for the building. It plans to convert it into a medical building that will cater to a tenant base of physicians and dentists. The renovation will be complete in the next four to six months, according to a company spokesperson. The property is located at 2 Osborn.
Sterling America was represented by Bryan Ohira of Lee & Associates – Irvine Spectrum. Chip Wright of CB Richard Ellis in Newport Beach acted on behalf of the seller, State Farm Mutual Automobile Insurance Co.
Some industry experts predict that the office market will start to turn around by mid-year 2002. In the meantime, however, recent research points to rising vacancy rates. A newly released Lee & Associates report says that vacancy rates in the county's office and flex-tech sector rose to 17.31% at the end of fourth quarter 2001. The figure reflects an increase of more than 2% from the third quarter, when rates were 15.11%.
Total net absorption for fourth quarter 2001 was negative 454,356 sf, according to Lee & Associates researchers. This figure marks a drastic change from third quarter 2001, when total net absorption was negative 234,723 sf. However, the report does point out that the month of December had a positive net absorption of 110,299 sf.
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