Irvine, Calif. – CBRE announced the sale of an 68,427 square-foot office building in Irvine, Calif. to Toda America Inc., a wholly owned subsidiary of Toda Corporation of Japan, for $26.2 million or $383 per square foot. This equates to a 5.6 percent capitalization rate.
CBRE’s Gary Stache, Anthony DeLorenzo and Rick Sherburne led the transaction on behalf of the seller, Canopi LLC, with support from Doug Mack, Bryan Johnson, Chris Martin, David Dowd, Jennifer Whittington and Matt Didier. Canopi is an Orange County-based family office. Kenji Sakai and Yoshio Fujiwara of CBRE represented the buyer.
Located at 111 Pacifica, the 68,427 square-foot, Class A office building is located in the Irvine Spectrum Entertainment Triangle. The property is 92 percent leased to a diverse combination of professional-service and multi-national tenants, with no one tenant occupying more than 22 percent of the total rentable area. The flexible floor plates and divisible suite sizes range from 858 to 10,470 square-feet.
“We continue to see strong interest from investors for quality, well-located office product,” said Stache. “Since the beginning of this pandemic our team has closed 36 transactions, and we have another 17 in escrow. The Irvine Spectrum location along with limited availability of quality investment assets were major drivers for this transaction.”
CBRE Deal Flow—the firm’s proprietary digital marketing hub for property sales—indicates that investor sentiment and transaction activity in commercial real estate are recovering from the depths of the COVID-19 crisis. Nearing the end of July, the number of signed confidentiality agreements was down by only 17 percent year-over-year—a marked improvement from the 74 percent drop-off in April and May. This measure of revived investor interest could be a harbinger of a future rebound in commercial real estate transaction volume.
Added Sakai, “Our CBRE teams did an excellent job in closing this transaction given the current COVID-19-related travel and touring restrictions. But our buyer was highly motivated, as they know that this Irvine Spectrum Entertainment Triangle site has scarcity value. It was a rare opportunity to acquire a Class-A property in this location and kick-off their full-scale U.S. real estate expansion.”
The Irvine Spectrum is experiencing significant office development, according to a CBRE research report. Construction is underway at Innovation Park, a 550,000 square-foot, low-rise office campus that is expected to be completed in Spring 2021. Spectrum Terrace Phase II, a three-building, Class A office project will add 344,353 square-feet to the market at the end of 2020.
CBRE’s Gary Stache, Anthony DeLorenzo and Rick Sherburne led the transaction on behalf of the seller, Canopi LLC, with support from Doug Mack, Bryan Johnson, Chris Martin, David Dowd, Jennifer Whittington and Matt Didier. Canopi is an Orange County-based family office. Kenji Sakai and Yoshio Fujiwara of CBRE represented the buyer.
Located at 111 Pacifica, the 68,427 square-foot, Class A office building is located in the Irvine Spectrum Entertainment Triangle. The property is 92 percent leased to a diverse combination of professional-service and multi-national tenants, with no one tenant occupying more than 22 percent of the total rentable area. The flexible floor plates and divisible suite sizes range from 858 to 10,470 square-feet.
“We continue to see strong interest from investors for quality, well-located office product,” said Stache. “Since the beginning of this pandemic our team has closed 36 transactions, and we have another 17 in escrow. The Irvine Spectrum location along with limited availability of quality investment assets were major drivers for this transaction.”
CBRE Deal Flow—the firm’s proprietary digital marketing hub for property sales—indicates that investor sentiment and transaction activity in commercial real estate are recovering from the depths of the COVID-19 crisis. Nearing the end of July, the number of signed confidentiality agreements was down by only 17 percent year-over-year—a marked improvement from the 74 percent drop-off in April and May. This measure of revived investor interest could be a harbinger of a future rebound in commercial real estate transaction volume.
Added Sakai, “Our CBRE teams did an excellent job in closing this transaction given the current COVID-19-related travel and touring restrictions. But our buyer was highly motivated, as they know that this Irvine Spectrum Entertainment Triangle site has scarcity value. It was a rare opportunity to acquire a Class-A property in this location and kick-off their full-scale U.S. real estate expansion.”
The Irvine Spectrum is experiencing significant office development, according to a CBRE research report. Construction is underway at Innovation Park, a 550,000 square-foot, low-rise office campus that is expected to be completed in Spring 2021. Spectrum Terrace Phase II, a three-building, Class A office project will add 344,353 square-feet to the market at the end of 2020.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
