Glendale-based office and industrial property investor PS Business Parks Inc. has sold a five-building office park in Irvine for nearly $42 million in one of three big Orange County property sales on the table for the company this year.
Irvine-based real estate investor Kelemen Caamaño Investment last week closed on the purchase of Corporate Pointe, a campus of two-story buildings near the intersection of Jamboree Road and Barranca Parkway.
The buildings, a short walk from the District at Tustin Legacy shopping center, range from 23,000 square feet to 38,000 square feet and total about 161,000 square feet. They sold for nearly $260 per square foot.
PS Business Parks executives indicated last month that they anticipated the buildings to close with a capitalization rate of about 5 percent.
The new owners plan a major renovation of Corporate Pointe, which last traded hands in 2000 and whose buildings have seen little in the way of renovations under the prior ownership, according to Kelemen.
PS Business Parks, a real estate investment trust valued at about $3 billion, owned seven Orange County business parks with nearly 2 million square feet of space as of late last year.
Three of those, totaling 705,000 square feet, including the recently sold business park in Irvine and sites in Orange and Santa Ana, have been listed for sale. The two others for sale are the Orange County Business Center, a five-building, 440,000-square-foot park on East Dyer Road in Santa Ana, and Orangewood, a two-building park in Orange that runs 107,000 square feet.
The Irvine, Santa Ana and Orange properties brought $8.4 million in net operating income last year, according to regulatory filings.
“They are really good assets that are well-placed, (and) desirable right now,” said PS Business Chief Executive Maria Hawthorne last month on her company’s latest earnings call.
Orange County Business Center was under contract to sell last month, Hawthorne said. Though Orangewood wasn’t under contract, it’s still being marketed for sale.
– Mark Mueller
Mueller is a staff reporter with sister publication Orange County Business Journal.
