SEAL BEACH, CA-A large national insurance company has sold Bixby Office Park, a three-building complex here, to PCPI Bixby, LP, an acquiring entity of San Diego-based Parallel Capital Partners, for $85 million. The sale is the largest office deal completed in Orange County to date in 2013.
The complex, a 297,241-square-foot property on 15.8 acres, is located at 3001-3005, 3010, 3020 and 3030 Old Ranch Pkwy. Built in 1987, it is currently 98% occupied, with major tenants including Baker Corp., SAIC, Olson Urban Housing, Seagate Offices and Clean Energy Fuels Corp.
Adam Edwards and K.C. Scheipe of Eastdil Secured represented the seller, while Parallel represented itself in the negotiations. According to Matt Root, one of Parallel's founding partners, the deal “is indicative of the improving conditions in the markets in the western US where Parallel Capital Partners does business. We see the opportunity to do additional high-quality deals in this region throughout this year and significantly expand the size and value of our portfolio.”
Root tells GlobeSt.com, “We are very pleased to announce the acquisition of this irreplaceable class-A office park. Its superior location allows companies to conduct business and access strong employee bases in Orange County and Los Angeles.”
Root adds that lease rates have bottomed out in the Orange County office sector and that vacancy is slowly decreasing. “Absorption is positive and stable, and there is no new speculative development on the horizon. As Orange County continues its nascent economic recovery, we believe that net effective rent growth with be meaningful.'
Orange County currently has the lowest unemployment rate in Southern California, Root says. “We think the private-sector recovery—led by high-tech manufacturing and services, hospitality, professional and business services. and scientific and technical services will be accretive to the overall Orange County payroll job growth over the next 24 months.”
As GlobeSt.com reported last week, Parallel has hired Peter Lloyd to the position of SVP, leasing. Lloyd, who has been named a principal of the firm, will handle all aspects of leasing for the privately held real estate investment and operating company.
Is interest in office trades picking up in your area? What are you noticing? Tell us in the box below.
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.
Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
