Chinese Investors Seek Newport Prestige

NEWPORT BEACH, CA-Having a Newport Beach address is seen by many US office occupiers as a sign of prestige that will help them in the business world, but it's clear this phenomenon is being adopted by foreign investors as well. As GlobeSt.com reported earlier this week, Comac, an aerospace firm based in Shanghai, China, has purchased 4350 Von Karman Ave., a 68,425-square-foot office building here, from MIG Real Estate LLC for $19.85 million. One of key reasons given for the purchase was the Newport Beach address.

“Newport Beach is the most prestigious city submarket within Orange County,” Steve Economos, EVP at Jones Lang LaSalle, who was part of a team representing the seller in the deal, tells GlobeSt.com. “With a new group wanting to make a splash, they were able to do that with a Newport address vs. anywhere else in the county. Irvine would be a close second, and some might argue that the South Coast Metro area near the South Coast Plaza shopping mall is also strong, but Newport tends to stand out among those cities as the most prestigious in the county.”

Economos says Comac had been looking at a site in Long Beach, but had decided to purchase the Newport Beach property instead. “They probably paid more per foot for it, since these properties tend to trade at a higher rate than Long Beach.”

Choosing Newport Beach over a Los Angeles locale comes down somewhat to personal preference—mostly, where executives are residing—and Newport Beach has many high-end residential areas along the coast or near the harbor, says Economos. “It's also where they feel their money is safe and the return on their investment is safe.”