The purchase price was not disclosed, but real estate industry sources believe Berwind paid more than $23 million for the property, which was acquired on behalf of BPG Investment Partnership VI, a $384 million private equity fund sponsored by Berwind Property Group.
The office property is an eight-story, class B building that was 95% leased at the time of the sale. It was built in 1983 and is part of the 43-acre master planned Hutton Centre, a mixed-use project containing six office buildings totaling 1.3 million sf, a 167-room Doubletree Hotel and 13,000 sf of retail space near the Irvine border.
Robert S. Smith and Mike Kane of the Newport Beach office of CB Richard Ellis brokered the sale, with Barry Gail and David Dowd of Cushman & Wakefield named as leasing agents for the property.
Elizabeth Owens, SVP of BPG, says the acquisition complements the company's existing portfolio, adding that the firm is looking to expand its holdings in Southern California. She says Berwind views the region as a recovering market with great long-term value appreciation.
Lang Sligh, a San Diego-based developer and property operator, joined BPG in the purchase and will be providing local oversight of the asset. Sligh says the property has upside because of upcoming lease roll-overs.
Berwind is a privately held real estate investment firm that owns nearly 30 million sf of office, multi-family, retail, hotel and industrial properties throughout the United States.
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