NGKF Completes $108M Recapitalization in LA

The company advised on the recapitalization of three Class A office buildings in Orange, Calif.

By Keith Loria, Contributing Editor

Paul Jones, NGKF
Paul Jones, NGKF

Los AngelesNGKF Capital Markets has advised on the $108.5 million recapitalization of three high-quality Class A multi-tenant office buildings located in Orange, Calif., on behalf of Greenlaw Partners and Walton Street.

Greenlaw and Walton originally purchased the buildings separately in 2014 and 2015 and have since achieved full occupancy on all three buildings.

“The transaction is a strategic recapitalization for Greenlaw Partners, who successfully executed their business plan by repositioning the three office buildings via capital improvement projects and lease-up,” Paul Jones, NGKF Capital Markets senior managing director, told Commercial Property Executive. “Furthermore, Greenlaw Partners and Walton were able to gain entitlements for two multifamily development projects offering stability for the buyer as well as upside in the strong central Orange County market.”

The assets consist of 600 City Parkway West, a 199,075-square-foot building with a tenant roster that includes Prospect Medical Holdings, ADOC Acquisition Co. and the Department of Health & Human Services; 3800 Chapman, an eight-story, 169,851-square-foot building with tenants that include American Advisors Group, Home Depot USA and the FBI; and 500 City Parkway, a 70,320-square-foot building that is home to Old Republic National Title and Reliant Financial Corp.

“The three office buildings are well located and cater to the large back-office user whose employee base is coming from Orange County, Los Angeles County and the Inland Empire,” Jones said. “Each building offers functional floor plates with convenient surface parking and an abundance of walkable amenities. Furthermore, this provided a unique opportunity to take advantage of a compelling value-add multi-family development site in conjunction with strong cash flows from the existing well-leased office campus.”

According to Jones, the project provides tremendous future optionality for the new partnership with multiple parcels and food groups.

“This transaction was a great example of a local operating partner adding significant value for their capital partner,” he said. “The buildings were repositioned via capital improvements projects and lease-up. Some of the capital projects included corridor and restroom renovations, landscaping and elevator modernizations.”

Jones was joined by Kevin Shannon, NGKF Capital Markets president of West Coast Capital Markets and Managing Director Ken White, in representing the existing partnership of Greenlaw Partners and Walton Street.