Greenlaw Partners Sells Orange County Office for $23 Million

An office building next to the Outlets at Orange shopping center sold to a local health insurance provider.

An affiliate of Astiva Health paid $23 million for the 10-story building at 600 City Parkway, the Orange County Business Journal reported. The price amounts to $113 per square foot.

An affiliate of Greenlaw Partners sold the 204,000-square-foot property, which it bought in 2014.

The buyer, listed in records as Avanta Properties City Parkway LLC, took out a $14 million loan to fund the purchase.

The building is about 50 percent vacant and leased mostly to healthcare tenants, according to CoStar.

The sale followed the trade of another Outlets at Orange-adjacent office building.

Newport Beach-based Surlamer Investments bought the 19-story, 369,000-square-foot City Plaza office building at 1 City Boulevard West from TPG Capital for $18.5 million, or about $50 per square foot, in July. TPG Capital acquired the building in foreclosure early last year after previous owners Greenlaw Partners and Walton Street Capital defaulted on $64.2 million in debt tied to the property.

Astiva’s headquarters is about a mile away at 765 The City Drive South, south of the Outlets at Orange.

Astiva runs a Medicare Advantage Prescription Drug health plan that delivers coverage for medical, hospital and prescription drug costs under one policy. The company began operations in 2021 with a focus on the region’s Vietnamese community, now operating largely in Orange, San Diego, Los Angeles, Riverside and San Bernardino counties.

Astiva announced plans to go public in late 2023, though it has yet to follow through on its IPO pursuits. The company was seeking to raise $15 million via a direct offering earlier this year, according to regulatory filings cited by the outlet.

Orange County’s office market is relatively tight, with vacancy falling to about 21.4 percent in the second quarter, according to Avison Young and Savills. L.A. County’s office vacancy rate is closer to 28 percent.

— Chris Malone Méndez