Gary Stache and Pat Scruggs, both in the CB Richard Ellis Private Client Group in Newport Beach, represented the seller and the buyer. Scruggs tells GlobeSt.com that the 22-year-old building would be difficult to duplicate today because of changed circumstances since it was constructed.
First, it's on a site that has ocean views from the top floors and development sites like that are hard to find, Scruggs says. Second, local regulations require voter approval of projects approaching the size of the 17th Street building, so any such project would face an uncertain future even if land were available, he explains.
The Orange County-based buyer purchased the office building from Scott Burnham of Burnham USA Equities Inc. of Newport Beach, its owner since 1999. The property, which is at the corner of 17th Street and Irvine Boulevard, was built in 1981.
The more than 90%-occupied building has below-grade parking and is part of the airport area office market in Orange County, which is considered a good long-term play by office building investors.
Brokers and other industry observers say leasing has been sluggish in the county's office market as it has everywhere, but sales of office buildings have remained strong because investors are more interested than ever in well-leased office properties. At least one office building in the county has sold for more than $65 million this year, and dozens of others have either traded hands or are in play, according to brokers from a number of firms.
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