CT Realty Plans Upgrades After $12M Buy

CT Realty's new acquisition is 100% occupied by the County of Orange Civil Courts and the State of California's Board of Equalization. The office building comes with an unusual parking arrangement, with parking at a ratio of more than five stalls per 1,000 sf of office space, but a reciprocal easement with the adjacent Lake Hills Community Church allows for more than eight spaces per 1,000 sf of office area.

According to Samuel E. Haynes, vice president of acquisitions and development for CT Realty, the company plans to invest approximately $550,000 in the property for landscaping and parking lot improvements, ADA and restroom upgrades, replacement of the building's HVAC units and numerous exterior improvements. Haynes says that the building appealed to CT Realty as an investment because of the property's location in a South Orange County office market that continues to offer interesting investment opportunities as residential development spreads to the south and southeast and decision makers seek office locations near their homes.

In addition, Haynes points out, the Laguna Hills portion of South Orange County is an established office submarket with outstanding access to the region's transportation networks, medical offices and hospitals, as well as one of the biggest entertainment centers in the country. Lake Hills Office Park is near the intersection of Moulton Parkway and Lake Forest Boulevard, with immediate access to Interstate 5 and the Irvine Spectrum with its broad range of restaurants, retail and professional services.

Equity financing for the acquisition was provided through CT California Fund V with debt financing by Pacific Coast Capital Partners. CT Realty was represented in the transaction by Mike Meisenbach and John Collins of the Newport Beach office of Lee & Associates. The seller was represented by Brian Garbutt and Allen Basso of the Irvine office of Lee & Associates.