Hines Sees Opportunity in Irvine, Calif.
- Aug 18, 2015
Hines has acquired Quintana, a four-building, Class A office campus in Irvine, Calif., that was the former Washington Mutual Campus.
In total, the campus is 430,000 square feet on 15 acres. The price of the deal was not disclosed.
“We are excited about another significant office opportunity in Orange County,” Ray Lawler, Hines’ managing director, said in a prepared statement. “Quintana is truly a unique campus offering, and with the major capital improvement plans focused on providing both business and lifestyle functionality, the project will be well-positioned to attract a wide range of tenants from across Orange County and Southern California.”
Located at the center of the Airport Area, the campus has prominent visibility and provides immediate access to the San Diego (I-405) and Costa Mesa (SR-55) freeways and close proximity to the Santa Ana (I-5), Corona del Mar (SR-73), and Laguna (SR-133) freeways. More than 15 restaurants and bars, two health clubs, and four hotels are within walking distance, and the property is situated less than a mile from the John Wayne Airport.
According to Transwestern’s Orange County Office Market report for 2Q 2015, the Class A office market continued to show positive momentum, and that local year-over-year job growth is trending higher than the national average.
“The Orange County office market in general and the Airport Area in particular, have strongly recovered from the subprime mortgage collapse of several years ago,” Michael Soto, Transwestern’s research manager, Southern California, told Commercial Property Executive. “Leasing activity and occupancy levels are up, average rental rates and sale prices are up, and speculative office construction is returning to the market which has seen limited new-office supply over the past few years. As a result, current office market fundamentals in Orange County are the best that we’ve seen since before the downturn.”
Hines has planned an extensive, $15 million capital improvement program on Quintana, which will transform the asset into a differentiated campus environment in the Airport Sub-market, according to the company’s prepared statement. The strategic capital upgrades will focus on improving the expansive open spaces and common areas to include new conference and fitness center amenities, functional outdoor workspaces, new lobbies and restrooms, upgraded landscaping and potential retail offerings.
At the time of the sale, Quintana was 13 percent leased and offers one of the largest contiguous vacancies and significant opportunities in Orange County exceeding 375,000 square feet across three buildings.
Hines has also assumed property management responsibilities for the property.