Dornin Acquires $20MM Value Add Class A Orange County 106,000 SF Office Property

Cypress Crossroads is a lender-owned, value-add office building centrally located in the Orange County community of Cypress, California. Built in 1987, the Property contains 106,341 square feet of office space on a 4.2-acre site, in the heart of one of California’s most affluent counties. Orange County is the second largest office market on the West Coast and generated over 1.0 million square feet of office absorption in 2013. With a current occupancy of 74%, Cypress Crossroads represents a compelling opportunity to enhance value through leasing and strategic property enhancements.

Situated on a highly visible, 4.2-acre urban infill site with 940 feet of corner frontage, Cypress Crossroads consists of a steel- framed, five-story office asset that was renovated in 2004, including full upgrades to lobby and common areas featuring quality finished stone and wood accents. The Property is leased to a diverse tenant roster, with 36% of in-place cash flow secured by Wells Fargo and Mitsubishi.

"This is the first opportunity we have seen in Orange County in a while to acquire a high quality, well located value add office that we didn’t feel like we were paying for the future value add today" said Chris Dornin, President and founder of Dornin Investment Group. "The Orange County office market is recovering nicely and this property represented an outstanding opportunity to acquire an office building at a substantial discount to replacement cost and previous market highs with occupancy upside and below market rents."

Financing was arranged in house by Scott Botsford through Colony Capital. “We are excited to start a new relationship with Colony and look forward to doing many more deals with them. They provided a great structure to accomplish our business plan and the process was very smooth” said Chris Dornin. Dornin Investment Group has engaged Unire to manage and Cushman Wakefield to lease the property.

 

About Dornin Investment Group
Dornin Investment Group (“DIG”) is a real estate investment and asset management firm that invests in commercial and residential real estate in partnership with a broad base of institutional and private investors. The firm specializes in distressed, opportunistic and value-add real estate investments in all major property types with a focus on office, flex, industrial, multifamily and hospitality properties. The company offers a full service investment platform providing property management, leasing, construction management and finance through its wholly owned affiliate Dornin Realty Advisors (“DRA”). For more information, visit www.dorningroup.com