|
CYPRESS, CA—The sale of Cypress Crossroads here to a private investor demonstrates that private-exchange buyers have emerged as more aggressive buyers than some of the more traditional institutional ones, Dornin Investment Group principal Andrew Kurzeka tells GlobeSt.com. The firm recently sold the multi-tenant office building to a private investor for $24 million, marking the third disposition for DIG this year as it continues to capitalize on the availability of private-exchange buyers in the market.
DIG acquired Cypress Crossroads in 2014 as a lender-owned, value-add opportunity centrally located in Orange County. Built in 1987, the property contains 106,341 square feet of office space on a 4.2-acre site. Occupancy at acquisition was 74% and was increased to 89% at the time of sale. The largest tenant, Premier Health Plan, which leased 22,387 square feet in August 2016, recently executed a 13,000-square-foot expansion, which will bring occupancy to 92%.
|
Situated on a highly visible, 4.2-acre urban infill site with 940 feet of corner frontage, the building is a steel-framed, five-story office asset that was renovated in 2004 and under DIG's ownership in 2015, including full upgrades to lobby and common areas. Some of the upgrades featured finished-stone and wood accents, new cooling towers, modernized elevators and an energy-management system.
Marc Renard, Manfred Schaub, Morgan Jackson and Jeff Cole of Cushman & Wakefield represented both seller and buyer in the sale, and Simon Dillon and Reid Weaver of CBRE represented DIG for leasing services during the hold.
Kurzeka tells GlobeSt.com, “The transaction demonstrates the continued flow of private capital into commercial real estate since it offers current income, wealth preservation and long-term capital appreciation.”
Kurzeka adds that there are more private-exchange buyers in the market at this time because many high-net-worth families continue to upgrade their portfolios by selling older assets in secondary markets and purchasing higher-quality ones in more core markets. “Private-exchange buyers have emerged as more-aggressive buyers than some of the more-traditional institutional buyers.” Orange County remains a highly desirable market for global capital due to its high quality of life, diversified and growing economy and proximity to executive housing, says Kurzeka.
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.
