search

The Real Deal Logo

Trending

WeWork announces deal to exit bankruptcy, avoid takeover by Adam NeumannWeWork announces deal to exit bankruptcy, avoid takeover by Adam Neumann99 Cents closures to open 3.8M sf of retail opportunities in SoCal 99 Cents closures to open 3.8M sf of retail opportunities in SoCal NAR settlement changes could challenge newer buyer agents in Chicago NAR settlement changes could challenge newer buyer agents in Chicago Explosion, fire at Related’s Casamar sales galleryExplosion, fire at Related’s Casamar sales gallery
Commercial
Los Angeles

Centurion Partners to end capital lease with $100 sale of Orange offices

County agency to buy five-building complex after paying estimated $180M in rent

Centurion to End Capital Lease With $100 Sale of OC Offices
Centurion Managing Partner Scot Matteson and 1928 South Grand Avenue in Santa Ana (Google Maps, LinkedIn)

Centurion Partners is poised to sell five office buildings in Santa Ana at the end of a decades-long, capital-lease deal for $100.

The Newport Beach-based developer led by Scot Matteson will close its deal with the County of Orange next year for the 212,000-square-foot cluster of buildings along South Grand Avenue, the Orange County Business Journal reported. 

The addresses of the buildings and closing date for the capital lease deal were not disclosed, nor were the terms of the lease.

The offices west of the 55 Freeway are being leased by the county’s Social Services Agency, which has occupied the offices for more than 30 years. The agency’s Santa Ana regional office is based at 1928 South Grand Avenue.

At the end of the capital lease, the county has the option to buy the property for $100. A capital lease acts as a loan, as the tenant is paying to purchase the property over time.

“You have to put a dollar amount when a property reverts back to the tenant,” Centurion Managing Partner Scot Matteson told the Business Journal in reference to the $100 price tag.

Sign Up for the undefined Newsletter

Matteson estimates the tenant has paid nearly $180 million in rent over the time his company has owned the 13-acre complex. 

The office campus started out with three buildings. Two decades ago, Centurion added two more at a cost of $50 million, including additional maintenance.

Elsewhere, Matteson and his Centurion Partners want to build a 2.7 million-square-foot, $1.6 billion retail village in Downtown Oklahoma City. In January, the firm filed plans to build a 1,907-foot tower — the tallest in the U.S.

But very little is known about him and his company. Neither of Matteson’s companies have a website. The Real Deal delved into the virtual unknown, whose development plans would dwarf the 1,776-foot One World Trade Center.

— Dana Bartholomew

Read more

Companies and People
Centurion PartnersCounty of Orange
Tags
capital lease