Newport Beach Office Tower Trades for $76M
- Sep 21, 2017
The trophy office tower at 4100 Newport Place Drive in Newport Beach, Calif., has come under new ownership, courtesy of a $75.6 million transaction. Relying on commercial real estate services firm Cushman & Wakefield for representation, American Realty Advisors sold the 190,400-square-foot building to Olen Properties in a deal that marks the highest office investment sale based on price-per-square-foot in Orange County year to date, according to the listing brokers.
“This investment opportunity had strong market response achieving multiple offers–in the double digits–from various investor types including institutional and private, high net worth capital,” Jeffrey Cole, executive managing director with Cushman & Wakefield, told Commercial Property Executive.
Premier Property, Premier Market
Built in 1990, 4100 Newport—also known as Newport Corporate Tower—is situated on 3.7 acres, in close proximity to John Wayne Airport. The nine-story building is 90 percent occupied, with tenants such as U.S. Bank and accounting firm Squar Milner. The remaining unoccupied square footage provides the new owner with certain upside potential.
Orange County is on the list of the U.S. office markets that experienced the strongest rent growth in the second quarter, according to a report by Cushman & Wakefield, with average asking rents rising a notable 12.5 percent year-over-year.
“The Orange County office market overall is poised for continued rental rate growth as vacancy rates drop into single digits ahead and given the limited new construction underway or planned compared to previous market cycles. Investors value the long-term benefits of owning in a highly desirable coastal location such as Newport Beach which is a relative value compared to other coastal office markets on the West Coast,” Nico Napolitano, an associate with Cushman & Wakefield, told CPE. “The Newport Beach office market is the most supply constrained market in Orange County and the most desirable address.”
Photo courtesy of Cushman & Wakefield