Cress Capital has added a discounted office building in Newport Beach to its collection.
The Newport Beach-based real estate company bought the 215,000-square-foot building at 1301 Dove Street for $41 million, the Orange County Business Journal reported. The price works out to $191 per square foot. The seller was Phoenix-based Western Alliance Bank, which seized it in foreclosure this year.
The 10-story building was constructed in 1980 and underwent an $11.5 million renovation in 2018. A joint venture between Ocean West Capital Partners and Rockwood Capital bought it in 2021 from PGIM for $64 million, about $8.3 million less than what PGIM paid for it in 2015.
The joint venture secured a $60.6 million loan from Western Alliance Bank to finance the purchase, but defaulted earlier this year on approximately $41.7 million in outstanding debt, Commercial Observer reported.
Tenants in the building include law firm Winthrop Golubow Hollander, and rubber manufacturer CRM.
Several Orange County office properties have traded at steep discounts this year.
In July, ParkTerra and Jen Partners paid $62.5 million for the five-building Axis business park in Anaheim. That’s about 25 percent less than what Pendulum Property Partners paid for it in 2018.
The month before, Newport Beach-based Surlamer Investments bought the 19-story City Plaza office tower in Orange from TPG Capital for $18.5 million, making it one of the cheapest deals in recent years in Orange County. TPG acquired the 369,000-square-foot City Plaza after Greenlaw Partners and Walton Street Capital defaulted on $64.2 million of debt at the property.
That same month, Anaheim Ducks owners Henry and Susan Samueli bought the 12-story Stadium Tower offices in downtown Anaheim for $72.1 million. CBRE Investment Management and CalSTRS had acquired the 261,900-square-foot property in 2017 for $63.9 million.
In March, a mystery buyer snapped up the five-story Plaza Pointe office building in Laguna Hills for $15.5 million — a sharp drop from its $74.3 million sale price in 2019. And in January, New York Life Insurance sold an 11-story office building in Irvine for $37 million, marking a 55 percent drop from the $82.5 million the firm paid for it in 2015. — Chris Malone Méndez
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