St. Joseph Health System signed a lease to occupy the entire space, furthering the transformation of Anaheim's urban core as part of an overall downtown revitalization to create a mixed-use, walkable haven with retail, restaurants, housing and other services nearby. Wanting to be exclusive to one building in an amenity-rich location, St. Joseph consolidated and relocated to 200 Center from numerous locations throughout Orange County in 2015.

“The future of Downtown Anaheim is bright since it is poised to continue on its path of increasing residential density, dining, retail, and new and expanding businesses seeking an amenity-rich urban location,” says Jones. In addition to Jones, the team representing the seller included NGKF's Kevin Shannon, Ken White and Blake Bokosky. NGKF's David Milestone and Brett Green executed the debt on behalf of the buyer.

Brian Veit, a principal with Seal Rock, tells GlobeSt.com about the property, “At the time we bought it, it was surprisingly hard to find equity. For one thing, it was vacant. For another, Anaheim was widely considered a 'tertiary' market, which meant that junior-level people at funds could dismiss it without having to do the work.”

Veit says that Mariner was a smart group willing to do a smart deal. “The business plan was to lease it up and sell that cash flow. With the great credit (AA-) and long term of the tenant, we had a very competitive field of buyers. I thought it was a great buy because it was north of a 6-cap on a great-credit tenant and term, but at $300 per square foot, still somewhere around half of replacement cost for a fairly recent-vintage building. And that price-per-pound metric doesn't even include the 950 parking stalls. Combine that with a revitalized Anaheim, and it was a real win-win.”

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ANAHEIM, CA—Downtown Anaheim has already experienced a major transformation in recent years, yet there is still upside for investors since it continues to see even more growth over the next decade or so, NGKF Capital Markets' senior managing director Paul Jones tells GlobeSt.com. Jones was part of a team that has completed the sale of 200 Center, a 191,556-square-foot, class-A, high-rise office building in Downtown Anaheim for $59.8 million to what industry sources tell GlobeSt.com is a joint-venture 1031-exchange buyer from Southern California known as 200 Center Street LLC, which includes Greenlaw Partners.

The seller is a joint venture of Mariner Real Estate Management, a Kansas-City, KS-based institutional real estate fund; PRES Real Estate, based in Orange County, CA; and Seal Rock Investments of San Francisco. The joint venture had purchased the property for less than $20 million in 2014.

Located at 200 West Center Street Promenade, 200 Center is situated on just over two acres of land and consists of an eight-story office building and a six-level parking structure. The property was built in the early 1990s for AT&T, which vacated before the sale to 200 Center St. LLC; it underwent a renovation in 2015.

A braced-steel frame with pre-cast concrete exterior panels originally designed by MVE + Partners, the building features strong tenant signage, an iconic round tower entrance and a healthy location in Anaheim. It offers distinctive architectural design, expansive window line, a fitness facility, an outdoor collaborative area and parking for almost 1,000 cars in a structure across the street.

St. Joseph Health System signed a lease to occupy the entire space, furthering the transformation of Anaheim's urban core as part of an overall downtown revitalization to create a mixed-use, walkable haven with retail, restaurants, housing and other services nearby. Wanting to be exclusive to one building in an amenity-rich location, St. Joseph consolidated and relocated to 200 Center from numerous locations throughout Orange County in 2015.

“The future of Downtown Anaheim is bright since it is poised to continue on its path of increasing residential density, dining, retail, and new and expanding businesses seeking an amenity-rich urban location,” says Jones. In addition to Jones, the team representing the seller included NGKF's Kevin Shannon, Ken White and Blake Bokosky. NGKF's David Milestone and Brett Green executed the debt on behalf of the buyer.

Brian Veit, a principal with Seal Rock, tells GlobeSt.com about the property, “At the time we bought it, it was surprisingly hard to find equity. For one thing, it was vacant. For another, Anaheim was widely considered a 'tertiary' market, which meant that junior-level people at funds could dismiss it without having to do the work.”

Veit says that Mariner was a smart group willing to do a smart deal. “The business plan was to lease it up and sell that cash flow. With the great credit (AA-) and long term of the tenant, we had a very competitive field of buyers. I thought it was a great buy because it was north of a 6-cap on a great-credit tenant and term, but at $300 per square foot, still somewhere around half of replacement cost for a fairly recent-vintage building. And that price-per-pound metric doesn't even include the 950 parking stalls. Combine that with a revitalized Anaheim, and it was a real win-win.”