Lincoln Property Company and GEM Realty Capital have sold One Pacific Plaza, the trophy-class office asset totaling 384,303 square feet in Orange County, to Prudential Real Estate Investors for $93.6 million, or about $244 per square foot.
The three-building portfolio at 7711-7777 Center Ave. in Huntington Beach, CA was built in the 1980s on 2.5 acres. It is comprised of a 12-story, 196,910-square-foot main tower bounded by two six-story buildings of roughly 99,000 square feet each. The 4-Star assets feature flexible floor plates and a 4:1 parking ratio.
JV partners Lincoln and GEM acquired the asset in October 2011 through a receivership sale. Since then significant upgrades have been made to the property to include remodeled lobby, upgraded elevators, and updates to the common areas, in addition to new outdoor seating areas and courtyards.
"This was a strategic acquisition of a ‘broken’ and distressed asset that we were able to stabilize in less than three years," said Kevin Hayes, senior vice president at Lincoln Property Company. "We focused on driving premium lease rates in a location-driven market, which required a nuanced understanding of our leverage in each situation. We accomplished this while addressing significant deferred maintenance and upgrading the property to solidify its status as a class A asset."
Over the last three years, Lincoln boosted occupancy there from 60 percent to more than 80 percent by leasing 205,000 square feet, including 120,000 square feet in new or expansion leases. The buildings are home to a diverse tenant roster of more than 40 local and national brands like BJ's Restaurants, Health Net of California, and Managed Health Network, Inc.
Prudential has retained Lincoln Property Company to continue managing the property. Eastdil Secured LLC brokered the sale.
Please see CoStar COMPS #3031453 for additional information on this transaction.