IRVINE, CA-“The sales market is seeing a substantial amount of activity compared to 2009, which in large part is due to the cost of capital and the amount of distressed deals within the market,” Baker Morphy, a vice president in the capital markets group at Jones Lang LaSalle tells GlobeSt.com. Morphy is serving as the exclusive broker for a deal here in Orange County, where Conexant Systems Inc., a supplier of innovative semiconductor solutions for imaging, audio, embedded modem, and video surveillance applications, today announced that it has signed an agreement with Uptown Newport LP to sell property adjacent to its Newport Beach headquarters for $23.5 million.
In addition, over in Irvine, CA, the Orange County office of Holliday Fenoglio Fowler LP has been named to market for sale Alton Corporate Plaza, a two-building, 205,000-square-foot stabilized office campus. HFF senior managing director Ryan Gallagher and director Kelly Rohfeld will market the property on behalf of the seller, Legacy Partners. The property is offered for sale without a formal asking price, however, according to Gallagher, “Alton Corporate Plaza is expected to attract bids of about $180 per square foot or $37 million. At that price, the buyer’s initial annual yield would be about 7.5%,” Gallagher adds.
Alton Corporate Plaza includes the 77,549-square-foot building at 1733 Alton Pkwy. and the 127,718-square-foot building at 1833 Alton Pkwy. The two-story properties are fully leased with JP Morgan Chase occupying 62% of the total space. All of the leases are NNN and there is no lease rollover until 2014. Situated on a 9.55-acre site within the Irvine Business Complex, Alton Corporate Plaza is accessible to the 5, 55 and 405 Freeways, John Wayne Airport and the Tustin Marine Base development within the Airport area submarket of Orange County.
Under the terms of the Conexant deal, Conexant will retain an equity investment in the land in the form of a limited partnership interest of up to $2.2 million, according to a prepared statement. Uptown Newport LP is a joint venture consisting of a fund controlled by New York-based DRA Advisors LLC and an affiliate of the Shopoff Group LP, a real estate investment firm based in Irvine.
“The divestiture of our property in Newport Beach will strengthen our balance sheet and provide us with increased financial liquidity,” says Scott Mercer, Conexant’s chairman and chief executive officer. “We plan to use the proceeds from the sale for general corporate purposes, including continued investments in our growth businesses.”
The property, located at 4311 Jamboree Rd. and 4321 Jamboree Rd., consists of approximately 25 acres and includes two leased buildings. Morphy tells GlobeSt.com that “This is a complex transaction with multiple moving parts. It was great to work with Conexant and drive the highest pricing for a irreplaceable property within the city of Newport Beach. We anticipate this closing by year end.”
He adds that “the fundamentals in Orange County are still weak as there are no signs of job growth within the market. Lease rates have bottomed out and will continue to be flat in 2011, with lease spikes starting in 2012.” However, he points out that five office transactions sold in the last few months for a total of $450 million, and all deals were being sold by the lender. Those transactions include: Quintana, Orange City Square, 18831 Von Karman, and Park Place II.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
