Terms of the deal were not disclosed, but Makar says it acquired the property at 10833 Valley View St. for a price well below estimated replacement cost.
According to Paul Makarechian, Makar president and CEO, the building recently became vacant when its major tenants, Sony and health-care provider PacifiCare, opted not to renew their leases. He says Makar sees "significant upside opportunity" at the building, which his company plans to market for lease to full-floor and multi-floor tenants over a 12- to 18-month period. Once the building is stabilized, he says, Makar plans to sell it.
Makar is a former owner of the Cerritos Corporate Tower in nearby Cerritos, where the company signed leases with 76,000 sf of tenants before selling the tower in January. The tenants that signed on in Cerritos were a mix of large credit and smaller professional service companies. Makarechian foresees that the former Sony Office Building will attract a similar mix. Like the Cerritos building, he says, the building in Cypress is close to the San Diego (I-405), Santa Ana (1-5), Artesia (SR-91), Garden Grove (SR-22) and San Gabriel (I-605) freeways.
Makar Properties is a real estate investment and development company focusing on office, industrial, mixed-use, land development, residential, hospitality and golf course properties. The company has more than $600 million in assets, representing $1.5 billion of ultimate development value upon completion, and currently maintains operations in California and Texas.
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