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ORANGE, CA-A private investor bought the 24,443-sf Wurth & Co. building for $3.2 million from Jonathan Enterprises in the latest of a series of deals in which former owners of apartment buildings are looking for other types of investments.

Mike Austin of Sperry Van Ness, who represented the buyer, tells GlobeSt.com that the investor was attracted to the Wurth property because “he couldn’t find what he considered an attractive cap rate in the apartment market.” The buyer had sold an apartment property and was looking for a 10-31 exchange, Austin explained.

Built in the early 1980s, the Wurth & Co. building is named for the accounting firm that is its main tenant. It is a two-story, wood frame and stucco structure with atrium at 171 S. Anita Drive in Orange that was 97% leased at the time of the sale. It features frontage on the 57 Freeway and is in the Edison Field submarket of North Orange County, with quick freeway access.

Austin tells GlobeSt.com that properties like the Wurth building are getting hard to find because relatively few come on the market and those that do are snapped up quickly. Many owners aren’t selling because they feel they’d have few places to put their money if they sold, he says.

“With the cap rates starting to drop down a bit for apartments, it seems that more buyers are looking at other types of product because you can get a pretty decent cap rate on multi-tenant office,” Austin says. “Some owners are very steadfast in wanting to stick with the same type of property they already own, but as cap rates go down, some of them are starting to look elsewhere.”

Jonathan Enterprises was represented in the sale by Chris Latta of Lee & Associates.

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