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SAN CLEMENTE, CA-CT Realty of Newport Beach has acquired the 43,000-sf Talega Corporate Center office development, citing upside potential in a property that is 85% occupied with leases due to roll over at rates below market levels. CT Realty paid $11 million for the two-story office building located in the master planned South Orange County Community of Talega.

The Talega Corporate Center, at 1211 Puerta Del Sol, is part of the Talega Business Park. CT Realty bought it from HG-Burke Talega Development LLC, which had owned the property since developing it in 2000.

The new owner “will benefit from significant upside potential through additional leasing and rolling rents” of $2.09 per sf to market levels of $2.45 full service gross per sf per month, according to Ryan Gallagher of the Newport Beach office of Grubb & Ellis. Gallagher was part of a Grubb & Ellis team including Scott Johnstone and Greg Puccinelli that represented the buyer and the seller.

The Talega Corporate Center is situated on two acres at the southeast corner of Puerta Del Sol and East Avenida Pico, San Clemente’s main thoroughfare for Talega. The approximately 6,600 sf of the building that is vacant has been improved to accommodate businesses seeking immediate occupancy and features a parking ratio of four spaces per 1,000 sf of office space.

The new CT Realty acquisition offered “a unique opportunity to own a class A office building in one of the most desirable submarkets in Southern California,” according to Robert Campbell, president of CT Realty. Campbell cites the high rate of residential growth in the area, the low office market vacancy and the building’s location approximately two miles east of Interstate 5, where it will also be within a mile of the 241 Foothill Transportation Corridor when the extension of the toll road is completed by 2011.

Class A office rents in South Orange County have increased roughly 20% over the past 12 months, and investment interest in the region is growing, Campbell says. “With no new office development planned for the foreseeable future, we think this property has excellent upside potential,” he adds.

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