HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--
One Pacific Plaza, widely regarded as one of the highest quality office properties in the Orange County market, has been sold by Lincoln Property Company and partner GEM Realty Capital to Prudential Real Estate Investors for $93.6 million.
One Pacific Plaza is a three-building Class-A trophy property that includes a 12-story main tower and two six-story mid-rise buildings across a total of 384,303 rentable square feet. Its flexible floor plates allow for single or multiple tenant configurations and a parking ratio of 4.2 spaces per 1,000 square feet.
Lincoln Property Company and GEM Realty Capital acquired One Pacific Plaza in October 2011 through a receivership sale and made significant upgrades to the building, including remodeling the lobby, elevators and updating the property’s common areas. The team also created new outdoor courtyards with seating areas. At the time of the acquisition in 2011, One Pacific Plaza included the adjacent 24-Hour Fitness center and Italian restaurant Buca Di Beppo; both were sold during Lincoln’s ownership.
Over the past three years, Lincoln boosted occupancy from 60 percent to over 80 percent by leasing 205,000 square feet, including 120,000 square feet of new/expansion leases. One Pacific Plaza now enjoys a diverse tenant roster of more than 40 local and national tenants. The largest tenants include the headquarters of popular restaurant chain BJ’s Restaurants, as well as Health Net of California and Managed Health Network, Inc.
“This was a strategic acquisition of a ‘broken’ and distressed asset that we were able to stabilize in less than three years,” said Kevin Hayes, Senior Vice President at Lincoln Property Company. “We focused on driving premium lease rates in a location-driven market, which required a nuanced understanding of our leverage in each situation. We accomplished this while addressing significant deferred maintenance and upgrading the property to solidify its status as a Class-A asset.”
Prudential Real Estate Investors purchased the building at $244 per square foot and will retain Lincoln as the property manager moving forward. The sale was represented by Eastdil Secured.
About Lincoln Property Company
Lincoln Property Company, founded in 1965 by its chairman Mack Pogue, is a privately owned real estate firm involved in real estate investment, development, property management and leasing worldwide. Lincoln has offices in all major markets of the U.S. and throughout Europe. Lincoln’s cumulative development efforts have produced over 100 million square feet of commercial space and over 209,000 multifamily residential units. Lincoln Property Company is one of the largest commercial real estate companies in the world. Visit www.lpcsocal.com for more information.
- Real Estate
Emily Heidt, 310-974-6682