Triple Net made the buy through its NNN 2003 Value Fund LLC, which will own nearly 97% of the property. Private investors will hold just over 3%.
In the deal, Triple Net paid Santa Ana Arts IV Inc. $14.4 million. Al Pekarcik and Dan Vittone of Voit Commercial Brokerage represented the seller, while Brendan Considine, director of acquisitions for Triple Net, along with Jeff Hanson and Ryan Gallagher of Grubb & Ellis represented the buyer.
Considine tells GlobeSt.com that 901 Civic Center is a class B-plus property with a good upside. "It's a multi-tenant property that we were able to pick up for $140/sf," Considine says. "We believe that was a terrific deal."
Triple Net looked at the property, which was roughly 65% leased at the time of the sale, and saw potential upside. "We're actually in discussion with a government entity who is looking at taking the majority of the vacant space," says Considine. He says that potential lease factored into Triple Net's interest in the property.
901 Civic Center was originally developed in 1986. "We'll make some upgrades, but no major expenditures. The property is in good shape as is," he adds.
The site is close to Santa Anna City Hall, and is occupied by multiple government entities. "Downtown Santa Ana is undergoing a revitalization," Considine says. "The Downtown area has been cleaned up in recent years and the area has experienced a healthy increase in rents."
He adds that the NNN 2003 Value Fund generally holds property for short periods of time. "We could hold for a year, or we could hold for up to three years, but we don't foresee holding longer than that."
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.
