Hines and Oaktree Capital Management have divested their second Southern California asset in a month with the sale of an office building leased by the state in Anaheim.
Easterly Government Properties paid $31.2 million for the 95,400-square-foot property.
The Washington, D.C.-based real estate investment trust bought the four-story building at the OC Link business campus at 1065 North Link in Anaheim Canyon, Orange County Business Journal reported. The price came out to $327 per square foot — almost twice the average price per square foot for current office sales in Orange County.
The building sold at a cap rate of 6.8 percent, unidentified sources told the newspaper.
The deal comes about a month after Hines and Oaktree Capital sold a 405,100-square-foot office campus leased by Raytheon in Fullerton for $76.5 million.
The Houston-based developer and the Downtown Los Angeles-based investment firm bought what was then known as the 143,600-square-foot Pacific Center in 2017 for $34 million, or $237 per square foot. It included the recently sold office building, plus three other buildings, with a hotel and shops.
The building sold to Easterly is fully leased by the California Department of Industrial Relations and the California Employment Development Department, which have occupied 1065 North Link since 2009. It comes with court hearing rooms and training rooms.
The state renewed its lease “post-pandemic,” according to Easterly. Terms of the lease were not disclosed.
Brokers Jeff Cole, Nico Napolitano, Brad Brandenburg and Kristen Bogler of Cushman & Wakefield represented Hines and Oaktree Capital in the deal.
Easterly Government Properties, with $2 billion in assets, leases offices to local and federal governments. It counts 89 properties, with 8.8 million square feet, in its national portfolio.
With its Anaheim purchase, it now owns 300,000 square feet of offices in Orange County, including offices in Tustin and Santa Ana.
— Dana Bartholomew
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