HUNTINGTON BEACH, CA—A partnership between Lincoln Property Co. and GEM Realty Capital has sold One Pacific Plaza, a three-building, class-A trophy office property here, for $93.6 million, or $244 per square foot, to Prudential Real Estate Investors. The property, which includes a 12-story main tower and two six-story mid-rise buildings for a total of 384,303 rentable square feet, has flexible floor plates that allow for single- or multiple-tenant configurations and a parking ratio of 4.2 spaces per 1,000 square feet.
Prior to deadline, PREI had no information for GlobeSt.com on its plans for the newly stabilized property. Lincoln Property and GEM had acquired the asset in October 2011 through a receivership sale and made significant upgrades to the building, including remodeling the lobby and elevators and updating common areas. The team also created new outdoor courtyards with seating areas. At the time of the acquisition, One Pacific Plaza included the adjacent 24-Hour Fitness center and Italian restaurant Buca di Beppo; both were sold during Lincoln’s ownership.
Over the past three years, Lincoln boosted occupancy from 60% to over 80% by leasing 205,000 square feet, including 120,000 square feet of new or expansion leases. The property now has a tenant roster of more than 40 local and national tenants, the largest of which include the headquarters of chain BJ’s Restaurants, Health Net of California and Managed Health Network Inc.
Speaking of his firm’s acquisition of the property in 2011 and subsequent stabilization, Lincoln Property’s SVP Kevin Hayes says, “This was a strategic acquisition of a ‘broken’ and distressed asset that we were able to stabilize in less than three years. We focused on driving premium lease rates in a location-driven market, which required a nuanced understanding of our leverage in each situation. We accomplished this while addressing significant deferred maintenance and upgrading the property to solidify its status as a class-A asset.”
The sale was represented by Eastdil Secured. PREI will retain Lincoln as the property manager for One Pacific Plaza moving forward.
As GlobeSt.com reported in April, the City of Anaheim has named Lincoln Property as the new property manager for the Anaheim Regional Transportation Intermodal Center, the $188-million transportation hub that is currently transforming the skyline between Honda Center and Angel Stadium in Anaheim. Upon completion later this year, ARTIC will serve as a major transportation gateway that eventually incorporates a mixed-use center on the existing 16-acre site owned by the City of Anaheim.