Joint-venture partners Lincoln Property Co. and Angelo, Gordon & Co. sold the Griffin Towers at 5 and 6 Hutton Centre Dr. in Santa Ana, CA to Blackstone office property affiliate Equity Office. At $129 million, the property sale represents the largest commercial transaction in Orange County so far this year.
The 12-story twin office buildings in the MacArthur Place office park total about 550,000 square feet of rentable square feet plus penthouses along with a six-story parking garage, retail plaza area, and a three-story atrium lobby.
Since acquiring the property in March 2010 from LA-based MPG Office Trust, Lincoln Property and its investment partner upgraded the lobbies and made improvements to common areas. Additionally the firm redeployed a dormant co-generation plant that now produces nearly 77 percent of the buildings' power on-site.
"Our acquisition and subsequent sale of the Griffin Towers is representative of Lincoln’s value-add strategy as an owner, operator and manager of Class-A office space across Southern California," said Kevin Hayes, senior vice president at Lincoln Property. "We identified a trophy asset in financial distress, invested energy and capital into alleviating deferred maintenance, and took a hands-on approach to improving occupancy in a challenging leasing environment."
The assets are now 88 percent occupied, anchored by Corinthian Colleges, CH2M Hill, Ultimate Software, and Premier Business Centers.
Kevin Shannon, Bob Smith, Paul Jones and Ken White with CBRE Group, Inc. represented the sellers. The buyer handled the acquisition in-house. Please refer to CoStar COMPS #2990214 for further information on this transaction.