2 Offices in SoCal’s Gateway Corporate Center Changes Hands for $48M
- Jan 25, 2008
Two Class A office buildings in the Gateway Corporate Center in Diamond Bar, Calif., totaling 162,300 square feet, have been sold to Cornerstone Real Estate Advisors for $48.5 million, according to brokers handling the deal.Falcon Real Estate Investment Co. of New York City sold the buildings at 21680 and 21688 Gateway Center Drive, which are 99 percent leased to high-profile tenants like Travelers Insurance and Wells Fargo. Falcon, which provides investment and management services for institutional and overseas investors, acquired the properties for $25 million in September, 2002, according to the firm’s website.Built in 2000, the two buildings are located in the master planned business park located at the intersection of the 57 and 60 Freeways in the Diamond Bar submarket of Los Angeles County within the San Gabriel Valley region.“Gateway Corporate Center is the top office asset in the Diamond Bar submarket, which has one of the lowest vacancy rates of any submarket in Los Angeles County,” Jeffrey Cole, executive director of Cushman & Wakefield’s Southern California Capital Markets Group, said today. Cole and Ron Heim, an executive director with Cushman &Wakefield’s Inland Empire office, represented both Falcon and Cornerstone.Cole noted that Diamond Bar and the City of Industry submarkets had an overall office vacancy of about 2 percent when the deal closed in late December. “Combined with strong tenant demand and increasing rental rates, this makes Gateway Corporate Center an attractive investment,” he told CPN today. “It’s one of the tightest, if not the tightest, submarkets in the Los Angeles County area.”Cole said the two buildings sold are among the best in the 255-acre office park that started developing properties about 1980. He said they have ample parking and are relatively new so no capital expenditures are needed at this time by the new owner.The sale price, which worked out to about $300 per square foot, “set a new high-water mark for pricing in that market,” Cole said. The previous high-water mark was about $280 per square foot for a building in the same office park that was sold last year. According to Cole, the sale went relatively smoothly because Cornerstone was an all-cash purchaser.Founded in 1994, Cornerstone is headquartered in Hartford, Conn., and provides investment and management services for private real estate equity firms and public real estate securities. Among its biggest deals in 2007, was the sale of Stamford Harbor Park, a 394,000-square-foot office property in Stamford, Conn., made famous by NBC’s sitcom, “The Office.” Cornerstone sold the property, which included a marina and land for development, to a joint venture of Antares Investment Partners, Goldman Sachs and Lubert-Adler Real Estate Funds for $135.8 million, according to a June 8, 2007, CPN report.Earlier this month, Falcon announced on its Web site that it had sold a 49,650-square-foot building in Miramar, Fla., for $14 million to a New York City private investment company. The building, which it had bought in 2003 with Kuwait Finance House, was fully leased to Royal Caribbean Cruise Lines.Falcon’s current portfolio is split into 18 percent multi-tenant office; 21 percent single-tenant office; 13 percent retail; 13 percent industrial and 35 percent development. Since it was founded in 1991, it has made approximately $4.5 billion in transactions. It also provides management services for over 14 million square feet of commercial real estate in major U.S. markets.