Stanton Road Capital to Revamp Newly Acquired Orange County Asset
- Sep 12, 2019
Stanton Road Capital has expanded its Southern California holdings with the acquisition of TriCentre, a 10-story, Class A office tower in Orange County. SRC purchased the 211,916-square-foot property for $44.3 million, or $209 per square foot, from PRES Cos., according to Yardi Matrix data.
The buyer received an acquisition and development loan of nearly $46 million from Global Atlantic Financial Group. Cushman & Wakefield will handle leasing and property management services.
The property is located at 333 S. Anita Drive at the so-called Platinum Triangle, where Interstate 5, State Route 57 and State Route 22 converge. SRC is planning significant renovations to attract additional high-value tenants. Planned improvements include a fully overhauled lobby and courtyard and numerous base building upgrades.
Previous cosmetic renovations were made in 2013 and 2017, also per Yardi Matrix information. Occupancy is currently at 78 percent and tenants include Farmers Insurance, Children’s Home Society of California, MegaMex Foods Inc. and Lockheed Martin. PRES Cos. had owned the asset since September 2015, when it acquired the property from TA Realty for $41.5 million, or $196 million per square foot. Completed in 1986, previous owners included Transwestern and The MONY Group.
The firm operates a portfolio of more than 5.8 million square feet in Chicago, Texas, Southern California and several major Midwest markets. In November, SRC acquired The Offices @ Village Business Park in Buena Park, Calif., from Westcore Properties. The 10.5-acre, two-building property located at 7000 and 7001 Village Drive totals 141,387 square feet.
SRC made its first downtown Chicago office acquisition in July. The firm partnered with Third Lake Partners, a Tampa, Fla.-based family investment firm, to purchase 200 S. Michigan Ave. from the Shidler Group. Crain’s Chicago Business reported SRC was expected to pay about $34 million for the leasehold interest in the 371,566-square-foot building, with the Shidler Group retaining ownership of the land.
The company has acquired more than 2 million square feet of office space in the Chicagoland area, including ArborLake Centre in Deerfield and Woodland Corporate Center in Downers Grove. Also in the Midwest, SRC purchased 2323 Grand, a 320,976-square-foot office building in Kansas City’s Crown Center from Assurant in January 2018.