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Greenlaw, Walton Street Capital put OC tower up for sale
Firms ask $100M for 350K sf, billed as 100% available
Greenlaw Partners and Walton Street Capital have put a 350,000-square-foot office that’s entirely available for lease on the sales block in Orange County.
The firms have listed City Plaza, an 18-story tower at 1 City Boulevard in the city of Orange, on the market, with an asking price of $100 million, according to LoopNet. CBRE is marketing the property and did not immediately respond to a request for comment.
Newport Beach-based Greenlaw teamed up with Walton Street Capital in Chicago to buy the property in 2013. The duo bought a 10-acre office site in Irvine as well as City Plaza for around $110 million in a package deal, according to reports at the time.
Neither Greenlaw nor Walton Street Capital responded to a request for comment.
The entire property is currently available for lease, according to property listings. Sources told The Real Deal one of the tower’s primary tenants, Interactive Mortgage, is moving out of the building later this year.
Average office vacancy rates in Orange – a city of about 140,000 adjacent to Anaheim – were around 14 percent in the fourth quarter of last year. The average asking rent for Class A properties was $2.50 per square foot a month during the same period.
If the property trades at its asking price of $286 a foot, it would be one of the less expensive office tower deals in the larger OC market in terms of price per square foot.
The most expensive deal last year was IRA Capital’s $103 million purchase of a 154,000-square-foot complex near Orange County’s John Wayne Airport, which clocked in at $667 per square foot.
Most of the office deals in Orange County lately have involved industrial players and redevelopment plans. Earlier this month, Prologis bought a 24-acre office campus in South Orange County for $96 million — around $298 per square foot.
Given City Plaza is located on about 450,000 square feet of land — big enough for a warehouse redevelopment — it’s possible an industrial developer will make a bid for the site.
Greenlaw Partners is also looking to sell a five-building creative office campus in Santa Ana for around $29 million, according to Newmark marketing materials obtained by TRD. Around 70 percent of that 83,000-square-foot complex at 1251 East Dyer Road is currently available for lease.