Monday Properties has acquired Spectrum Tower, a seven-story office building in Laguna Hills, Calif., that marks the investment company’s first major deal in Southern California. CBRE arranged the deal on behalf of seller TA Realty. The property was last sold 10 years ago for $35.6m, or about $314 per square foot, and additional details of the sale this time around couldn’t be determined.
The 120,000-square-foot properties ticks a number of boxes for Monday Properties, which is shifting back into acquisition mode after spending most of the past three years at a net seller. “As a transitional asset in an infill market, [Spectrum Tower] fits into our investment thesis,” said Phil Cyburt, managing partner. The company is looking to buy properties that are dominant in dynamic and robust micro markets similar to South Orange County, he added.
Although Spectrum Tower has been a good performer over the years and is fully leased, there’s the potential to create value as leases expire, Cyburt said. “This is a well-maintained building but it’s also in need of some renovations. We’ve got an opportunity to create value for the tenant base, with some outdoor seating and creating well-articulated entrances,” he added. “The bones of the building are very good, which is one of the things we loved about it.”
The property, at 23046 Avenida de la Carlota, has surface parking and easy access to the 5 and 405 Freeways. It’s also close to Irvine Spectrum, a major regional outdoor mall with more than 160 stores and three hotels. “Southern Orange County is seeing all of the growth and absorption. There’s great housing stock and high quality retail,” Cyburt added.
Cyburt, who came on board at Monday Properties in February with the mandate of expanding its West Coast holdings, said the firm is looking at additional acquisitions in Los Angeles and San Diego on both off-market and fully marketed transactions.