45,451 SQFT Office Asset Listed in Garden Grove for $18.59MM

Newmark, Garden Grove, Higher Education Center, Concorde Career College, McDonald’s, Pacific Development Partners

By Catherine Sweeney 

Higher Education Center, a fully leased office building in Garden Grove, has recently been placed on the market. According to the property listing by Newmark, the 45,451 square-foot building is being offered with an asking price of $18.59 million, or about $409 per square foot. 

Located at 12951 Euclid Street, the property was built in 1999 by Los Angeles-based Pacific Development Partners, which currently owns the property. The property totals 4.89 acres and contains the higher education center leased to Concorde Career College. Recently signing a new 10-year lease, the institution operates the building as a medical and dental vocational school. 

In addition, the offering includes 30,460 square feet of land occupied by a McDonald’s ground lease and a 350-space parking lot. McDonald’s has four years remaining on its current lease with three additional five-year extensions.

“Together, the property’s long-term tenancy provides a secure cash flow for investors well into the future,” the offering memorandum states. “Higher Education Center offers a compelling opportunity to acquire a stabilized mixed-use project in a resilient market with long-term, favorable leases in place.”

The property is centrally located in Orange County near State Road 22 and Interstates 5 and 405. Nearby are also numerous shopping and dining amenities as well as several other educational institutions and schools. These include Coastline Community College and Garden Grove High School. 

Orange County’s office market is making a steady recovery, according to Newmark, after the COVID-19 pandemic. Despite vacancies remaining high at 15.9 percent, the Orange County office market saw net positive absorption of 26,709 square feet during the fourth quarter of the year. Additionally, office sales volume in 2021 marked the strongest year since 2017, with several large deals in the fourth quarter of 2021. Irvine saw the largest sale on a per square-foot basis in the past 10 years, when IRA Capital acquired a 154,418 square-foot office campus for $103 million, or about $667 per square foot. 

Newmark did not respond in time to comment on this story.