The suburban office park at 16842 Von Karman Ave. occupies a landscaped campus setting in the Irvine Business Complex, a half-mile from Orange County's John Wayne Airport. Argus says the property, which was purchased via a tenant-in-common structure, was fully subscribed in six days after it offered the property. The TIC buyers include nine 1031 Exchange investors and three direct participation investors.
The Von Karman property was originally built as the Orange Country regional headquarters for Sperry Univac and provides an "extremely good location with quick, easy in-and-out air and ground transportation," observes Dick Gee, chairman and CEO of Argus Realty Investors. Gee says the location is a prime reason the office development, now 93% occupied with further commitments pending, has maintained strong occupancy through volatile economic cycles. According to Peter Andrich, SVP of CBRE's Newport Beach office, the "strategic location" not only appeals to employee commuter and visiting business travelers but is also a half-block away from the new 1600-acre mix-use office, commercial, residential, golf course development on the former Marine Corps Air Station in Tustin. Andrich presented the property to Jean Murphy, Argus Realty's SVP of acquisitions who had tracked it for six months. The property drew "significant interest and a number of bona fide offers" in addition to the Argus offer, Andrich says.
Financing for the deal included a $10.8 million, five-year, 5.2% fixed-rate loan with a 30-year amortization that was arranged with a major institutional lender by Brian Eisner, principal of George Elkins Mortgage Banking Co. in Los Angeles. The property will be managed by Kearney Real Estate Co., which also manages a 720,301-sf business park for Argus in Santa Fe Springs.
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