JP Morgan, Steadfast Fill 115,000 SF of Office

Chase, which took over Washington Mutual in 2008 after Washington Mutual failed and was seized by the FDIC, is moving from a nearby office campus called Quintana that Washington Mutual formerly occupied. When the FDIC seized Washington Mutual, it rejected the majority of Washington Mutual's Quintana lease, which reduced the occupancy of the office complex by approximately 250,000 square feet. Los Angeles-based Maguire Properties, owner of a 20% interest in Quintana in a joint venture with 80% owner MacQuarie Office Trust of Australia, said last year that the owners would stop making mortgage payments on Quintana because it was reduced to 40% occupancy and not generating enough cash to pay the debt.

Chase was represented by a Grubb & Ellis Co. team including EVPJack McNutt and SVP Chon Kantikovit of the company's Newport Beach office and EVP Maury Gentile of the Grubb & Ellis South Bay office.

The Irvine Co. says that, despite the downturn, the signings by JPMorgan Chase and Steadfast follow the company's second-highest monthly office leasing total ever in December and one of the best years in its history in terms of leasing totals in 2009. In December, Irvine Co. Office Properties signed leases totaling one million square feet, and for the year it signed more than 6.7 million square feet of deals.

Said Steve Case, executive vice president of Irvine Company Office Properties, "Many of our customers are telling us they anticipate improved business conditions in 2010, and the range of companies signing new leases with us is a strong signal that the recovery could be broad and encompass virtually all sectors."

Financial terms of the Chase and Steadfast leases were not disclosed. Asking rates for the five-building Jamboree Center range from $2 to $2.50 per square foot per month, according to the Irvine Co.'s web site. Asking rates for 18100 Von Karman range from $2.05 to $2.30.