Real Estate Partners Buys New HQ

Real Estate Partners, an investment firm that also owns and operates Coldwell Banker Commercial REP, acquired the two-story building at 2569 McCabe Way from a private investor and expects to move into its new quarters in July, according to Dawson Davenport, president of the firm. Real Estate Partners, which acquired more than $200 million in assets in 2003, has been growing quickly and needs the extra space for its traditional operations as well as its new services oriented toward 1031 Exchange buyers, Davenport notes.

Terms of the purchase were not announced, but the building, which was completed in 1979, sold in August last year for approximately $3.9 million. While the company bought the building to house its expanding operations, the McCabe facility is also another investment acquisition, Davenport says. Real Estate Partners will occupy half of the available space, which it will share with its Coldwell Banker Commercial REP franchise. The remaining 12,000 sf will be available for lease, and once the property will eventually be offered as a leased investment to an investor or user/investor.

REP bought the building via RepFund 2569 McCabe LLC, whose managing member is Real Estate Partners Inc. George Economos of NAI Capital Commercial in Irvine represented both the buyer and the seller. Extensive renovations are under way and include a new exterior, elevator, lobby, tenant improvements, landscaping and parking lot.

Privately held Real Estate Partners specializes in the acquisition, repositioning and management of under-performing properties. The company owns and operates Orange Coast Commercial Inc. DBA Coldwell Banker Commercial REP. Among Real Estate Partners' deals in 2003 was its $145 million purchase of a 2,400-unit portfolio of eight apartment complexes in Virginia and North Carolina from the Chicago-based Equity Residential REIT.