$80M Arena Project Hits 100%

Three new tenants have signed leases totaling 230,392 sf at the office complex in the past four months. Some 150,000 sf of the building, was leased to Syndicated Office Systems, a subsidiary of Santa Barbara-based Tenet Healthcare Corp., before construction of the office campus began. The remaining space will be occupied by an on-site deli and the building's management office.

Terms of the deals and the names of the three new major tenants were not disclosed, but industry sources say the companies that will fill the 230,392 sf are Washington Mutual, Advantage Sales and Ameriquest Mortgage. Washington Mutual is believed to have signed for 56,000 sf, Advantage Sales for 47,000 sf and Ameriquest for 130,000 sf.

Arena Corporate Center is a three-building, two-story campus at 1400, 1500 and 1600 Douglas Rd. The project began in August 2001 when TCC's Southern California Development and Investment Group acquired 23 acres of land adjacent to the Arrowhead Pond from Polygon Development. The Trammell Crow team responsible for planning, developing and leasing the new office project included Tom Bak, managing director; David Nazaryk, a TCC principal; VP Steve Hollis, who headed the construction team; and VP John Harty, who heads leasing for the development. Despite a lack of comparable space in the market, many industry experts considered the project risky because of the soft economy and rising vacancy rates. Before construction began, however, Syndicated Office Systems signed its lease, which is a relocation of its headquarters from Santa Ana to the Arena Corporate Center.

The office development occupies a campus environment that incorporates a one-acre palm tree courtyard with electrical and data hookups, outdoor jogging track, basketball court and on-site showers. Other features include lower electricity costs because power is available from the City of Anaheim, 1,000 ft of visibility from the 57 Freeway, and a parking ratio of five spaces for every 1,000 sf of office space.

Trammell Crow Co. developed the center on behalf of Washington, DC-based Multi Employer Property Trust and its pension fund adviser, Kennedy Associates Real Estate Counsel of Seattle. The project was designed by MacDavid-Martinez Architects of Tustin, with McCarthy Building Cos. of Newport Beach as general contractor. With the completion of the new campus, TCC's Southern California Development and Investment Group is now responsible for a portfolio of commercial space approaching 13 million sf and valued at more than $1 billion.