A newly renovated office building in downtown Riverside has been listed for sale after last trading hands in 2018. According to an offering memorandum obtained by The Registry, the multi-tenanted property is listed with an asking price of $14.29 million, or approximately $218 per square foot.
Located at 2280 Market Street on nearly 2.5 acres, the three-story property totals 65,380 square feet. The building was initially built in 2005 and has had major renovations over the past several years by its current owner, Dornin Investment Group. According to public records, the Laguna Beach-based real estate investment company purchased the property for $24.78 million.
“A majority of the vacant suites have been completely spec’d out and are move-in ready. They feature floor-to-ceiling glass walls, brand new lighting, ceiling tiles, carpet, paint, and exposed kitchenettes. This offers new ownership the ability to capture immediate upside through the leasing out of those spaces without huge capital contributions,” said Sammy Cemo, vice president with CBRE, which is listing the property.
The building is currently 55 percent occupied with major long-term tenants including the State of California, Hospital Association of Southern California, HDR Engineering and more. According to CBRE, the property offers a net operating income of $1.37 million and annual cap rate of 7.96 percent. In addition, lease expirations are staggered so that no single year has more than 21 percent of the rentable area expiring.
The property also benefits from its location in downtown Riverside, putting it in close proximity to a wide array of shopping and dining. The 1.2 million square-foot Galleria at Tyler is just eight miles from the property and the Moreno Valley Mall is also just a short drive from the property. In addition, the building has easy access to surrounding amenities in nearby Los Angeles and Orange counties through nearby Interstate 215 and State Roads 60 and 91.
The offering memorandum also shows that the property is ideally located due to the high demand and limited supply for office product in the Riverside submarket. According to CBRE, Riverside is projected to rank first in Southern California’s top investment office markets over the next two years. In the same period, rental rates are projected to grow 5.6 percent.
According to CBRE, Riverside is the 11th largest county in the U.S., with a population of 2.4 million. The city itself is home to a labor force of 159,578 and 12,766 employers. The average household income in Riverside County is approximately $89,082.
“Downtown Riverside is one of the strongest office submarkets in the IE. Rental rates have continued to increase as demand has been steady even during the pandemic,” Cemo said.
