The OC Rides Recovery’s Wave

Earlier this year, the Irvine Co. acquired MPG Office Trust’s four-building, 827,000-square-foot Pacific Arts Plaza complex out of receivership in Costa Mesa for north of $200 million. That deal is representative of Orange County and the investors it attracts. The Irvine Co., for one, is possibly the largest landowner in the county, tracing its origins there back nearly 150 years.

The acquisition is just one of the many examples of increased investor appetite in the OC—an area that local sources agree has done remarkably well compared to other parts of Southern California. Fundamentals are improving and transaction totals have increased, thanks to a flight to quality within core properties and across all sectors. With a highly educated work force, decreasing unemployment and high barriers to entry for new development, both the macroeconomic indicators and the large volume of capital waiting to return to the market make Orange County an attractive place to invest, says Steve Fried, a principal in the L.A. office of Mesa West Capital. Fried, whose West Coast originations include work in Orange County, says OC investors “believe in the inevitable recovery that will lead to significant growth in the near future.”