PGIM parts ways with Class A office for $64M

Joint venture between Ocean West, Rockwood Capital pick up 10-story building

Los Angeles /
Nov.November 08, 2021 12:30 PM
PGIM parts ways with Class A office for $64M
1301 Dove Street in Newport Beach CA, Ocean West Principal Russ Allegrette, and PGIM President and CEO David Hunt (Google Maps, Ocean West, PGIM)

PGIM is taking an apparent loss on an office building in Newport Beach, selling it to a joint venture between Ocean West Capital Partners and Rockwood Capital for $64 million.

The 10-story Class A office building was sold at a rate of about $298 per square foot, according to the Commercial Observer. The sale comes six years after PGIM bought the building from Metropolitan Life Insurance Company for $72.3 million.

The property at 1301 Dove Street in Newport Beach was renovated for $11.5 million in 2018, which included upgrades for tenants and the addition of electric vehicle charging stations. The building was constructed in 1980.

More changes are on the way for the building, which is 49 percent leased. Ocean West is looking at adding a new fitness center for tenants, as well as a 7,000-square-foot outdoor patio, according to the Observer.

PGIM was represented by a Newmark team including Kevin Shannon and Paul Jones in the transaction.

Newmark’s third-quarter office report revealed a 12.5 percent vacancy rate in Newport Beach, below the Orange County vacancy rate of 16.1 percent, according to the Observer; the latter is the highest rate for the county in nine years. The average asking rent for Class A office space in Newport Beach is $3.47 per square foot, above Orange County’s average of $2.78 per square foot.

Earlier this year, PGIM and Madison Capital sold a recently revamped mixed-use building in Downtown San Francisco for $165 million. Oakland-based Harvest Properties was the buyer of the 170,000-square-foot building at 360 Spear Street.

Ocean West Capital Partners and Seoul-based Hana Asset Management recently struck a deal with Brookfield to sell the DreamWorks Animation headquarters in Glendale for $327 million. That deal is in escrow and is expected to close in December.

[CO] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Vacant Hollywood Hills property tied to Betty Ford finds buyer
    Vacant Hollywood Hills property tied to Betty Ford finds buyer
    Vacant Hollywood Hills property tied to Betty Ford finds buyer
    The park and UCI Health CEO Chad T. Lefteris (Facebook via Great Park, UCI Health)
    City of Irvine sells naming rights to public park for $5.7M
    City of Irvine sells naming rights to public park for $5.7M
    Santa Ana Mayor Vicente Sarmiento (City of Santa Ana, Getty)
    Apartment owners give up fight against Santa Ana rent control
    Apartment owners give up fight against Santa Ana rent control
    China-tied OC builder announces townhome project
    China-tied OC builder announces townhome project
    China-tied OC builder announces townhome project
    Red Oak Investments' Alex Wong and A-1 Trailer Park (Google Maps, Red Oak)
    Presto on PCH: apartment developer plans to make trailer park disappear
    Presto on PCH: apartment developer plans to make trailer park disappear
    The portion of land with renderings of proposed development (LoopNet)
    6 percent of Bel Air on discount
    6 percent of Bel Air on discount
    600 East Broadway (SRS)
    $43M price check at Vons supermarket in Long Beach
    $43M price check at Vons supermarket in Long Beach
    Lone Star Funds founder John Grayken and Westin LAX (Lone Star, Marriott)
    Price revealed: Lone Star paid $71M for Westin LAX
    Price revealed: Lone Star paid $71M for Westin LAX
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...