Dealmaker: Newmark Arranges $64M Office Sale
Newmark, New York, sold 1301 Dove, a 10-story, 215,000-square-foot office building in Newport Beach for $64 million, or $298 per square foot.
The property traded in an off-market transaction. Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Paul Jones, Brunson Howard and Ken White and Director Brandon White represented the real estate investment advisor seller identified by Commercial Observer magazine as PGIM, Newark, N.J. A joint venture between Ocean West Capital Partners, El Segundo, Calif. and Rockwood Capital, New York, purchased the asset.
“1301 Dove allowed the buyer to capitalize on a rare opportunity to purchase a value-add deal that has also benefited from a recent comprehensive repositioning plan,” Shannon said.
Newmark Vice Chairman David Milestone and Senior Managing Director Brett Green arranged the financing on behalf of Ocean West and Rockwood Capital.
The property is in the Greater Airport Area submarket, near Interstate 405, California State Routes 55 and 73 and the John Wayne Airport.
Newmark Research called the Orange County office market poised for a post-pandemic recovery given its strong demographics, growing tech base and diverse occupancy pool. “Sublet availability in the market has likely peaked and leasing fundamentals are expected to improve later this year into 2022 as employees return to the office and more companies begin to execute on long-term real estate needs,” the firm said.
Built in 1980, the property received an $11.5 million capital renovation in 2018 that included a lobby upgrade, upper-floor common area renovations, elevator cab upgrades, EV charging station additions and tenant improvements including a speculative suites program. With the known upcoming vacancy of Alliant Insurance, the multi-tenant property is 49 percent leased, giving the new owner the ability to market building-top signage opportunities.