MISSION VIEJO, CA—GlobeSt.com has learned exclusively that CK HighPark LLC has purchased HighPark Corporate Center, a 37,579-square-foot class-A office building at 23341-23361 Madero here, for $6.7 million from Madero LLC & Wyocal LLC. The $177-per-square-foot price tag represents the second-highest square footage price for an office building sale in Mission Viejo since the recession.
As GlobeSt.com reported in September 3013, Prudential Real Estate Investments sold Mission Ridge, a two-building-class-A project that fronts I-5, for an undisclosed amount to Cornerstone Real Estate Advisors. We have since learned that the price for that transaction amounted to approximately $237 per square foot.
Avison Young principals Dan Vittone and Alan Pekarcik, both based in the firm’s Irvine office, along with Trent Walker of Voit Real Estate Services, represented the seller in the HighPark transaction. The buyer was in a 1031 exchange and was represented by Bratun Real Estate.
According to Vittone, “Investors are seeking out properties such as this one in the South Orange County market because of the high barriers to entry for new development, strategic location, dense population and strong income demographics. This market boasts a 10.9% direct vacancy rate for buildings 20,000 square feet and larger, and with no competitive product under construction, rents are forecasted to continue to increase.”
Built in 1986, the two-story building is 93% occupied by four tenants and is located within the 112-acre master-planned, mixed-use HighPark business park. The center’s largest tenant is Holt Integrated Circuits, which occupies 58% of the building and has been a tenant for the last 16 years.
Office trades have been few and far between in the Orange County office market, but occasionally a trophy building gets snatched up. As GlobeSt.com reported last week, a partnership between Lincoln Property Co. and GEM Realty Capital has sold One Pacific Plaza, a three-building, class-A trophy office property in Huntington Beach, 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.