Former Arden Properties Sell for $20M

HUNTINGTON BEACH, CA-CT Realty Corp. of Newport Beach has acquired two office and flex/industrial properties totaling more than 126,000 sf from Los Angeles-based Arden Realty and plans to spend approximately $1 million on improvements, according to the Newport Beach-based buyer. The transaction included the 56,285-sf Huntington Beach Plaza and the 69,849-sf Huntington Beach Commerce Center.

According to Robert Campbell, president of CT Realty, the investment appeal of the properties included their access to multiple freeways, the Los Angeles ports and all levels of residential living. In addition, Campbell notes, vacancy in the area "is practically non-existent" and businesses in the area tend to stay in their spaces for many years.

The properties are located in the city's predominant office and industrial region off Bolsa Avenue. They are adjacent to Sharp Electronics, Quiksilver and the Boeing campus, where more than 3,000 new workers are expected over the next few years.

Huntington Beach Plaza consists of two two-story office buildings on almost three acres at 5762 and 5772 Bolsa Ave. The property is primarily small office suites and features approximately four parking spaces per 1,000 sf of building space, with an occupancy rate of about 77% at the project. CT Realty plans to improve and redesign the two larger suites into smaller units of 2,500 sf to 3,500 sf to better reflect the market demand.

Huntington Beach Commerce Center, at 15121 Graham St. and 5445 Oceanus Dr., is situated on slightly more than 3.1 acres. It consists of two single-story flex/industrial buildings that are designed for manufacturing and distribution uses. The buildings are near 100% occupancy.

Equity financing for the acquisition was provided by CT California Fund V, with GE Capital Corp. providing the debt financing. Both CT Realty and the seller were represented by Peter Andrich and Bob Goodmanson of CB Richard Ellis in Newport Beach.