Orange County office asset sold for $24MM

Dornin Investment Group (“DIG”) has sold Cypress Crossroads to a private investor for $24MM.  The disposition is the third for DIG this year as they continue to capitalize on the availability of private exchange buyers in the market. “This is another great example of DIG successfully executing our business plan and returning capital to our partners,” says Eric Entringer, V.P. of Capital Markets and Investor Relations at DIG.  “We continue to execute on our value-add investment strategy across key markets throughout the Western U.S.” 

 

The multi-tenant office building was acquired in 2014 as a lender-owned, value-add opportunity 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.  Occupancy at acquisition was 74% and was increased to 89% at the time of sale.  The largest tenant, Premier Health Plan, which leased 22,387 SF in August 2016, recently executed a 13,000 SF expansion which will bring occupancy to 92%.  “I have always had an affection for this building due to its presence, quality and ‘main and main’ location,” stated Simon Dillon of CBRE, “I am extremely pleased to land such a quality Fortune 500 tenant for a majority of the vacant space.”

 

Situated on a highly visible, 4.2-acre urban infill site with 940 feet of corner frontage, the building is a steel- framed, five-story office asset that was renovated in 2004 and under DIG’s ownership in 2015, including full upgrades to lobby and common areas featuring quality finished stone and wood accents, new cooling towers, modernized elevators, and an energy management system.  “The Property attracted global investor interest as a result of its central location to the vast labor pools in Los Angeles and Orange County and its prestigious tenant roster” stated Marc D. Renard, Executive Vice Chairman of Cushman & Wakefield’s Capital Market Group.

Marc Renard, Manfred Schaub, Morgan Jackson, and Jeff Cole of Cushman & Wakefield represented both seller and buyer in the sale and Simon Dillon and Reid Weaver of CBRE represented DIG for leasing services during the hold.

 

DIG continues to seek well located value add acquisition opportunities and is currently targeting opportunities in Las Vegas, San Diego, Denver, Phoenix, Houston and San Antonio.