Cerro, a fully occupied office building in Mission Viejo, is adding to a number of office properties in Southern California that have recently been placed up for sale. The 71,464 square foot office building is marketed by JLL for an undisclosed price. However, public records show that the property last sold for $21.47 million, or about $300 per square foot, when it was acquired by Bolour Associates in 2018.
The property is located at 27401 Los Altos and was built in 1984. The property totals four stories and sits on 3.82 acres. The building recently underwent a multi-million dollar renovation as well, which consisted of exterior hardscape and landscaping, main lobby renovation, elevator modernization and upgrades to common areas, corridors and restrooms.
With full occupancy, the property is home to several tenants and provides a net operating income of $1.93 million. Current tenants at the building include Pulte Homes, United States General Services Association, Sovereign Surgical Holdings and several others. Overall, tenants carry an average weighted lease term of six years. In addition, the GSA is getting a brand new $1.3 million renovation of their office space after signing a 10-year lease renewal at the property.
The property is situated in south Orange County, across the street from Providence Mission Hospital Mission Viejo. The property also maintains easy access to Interstate 5 and is located near various retail amenities as well, including the shops at Mission Viejo which is home to approximately 150 stores and restaurants.
Despite an overall decline in interest for office space from tenants and investors across southern California, low- and mid-rise office spaces in the South County region are starting to see a resurgence, according to information from JLL. Current leasing activity shows tenants are preferring to lease space in low and mid-rise surface parked buildings. Year-to-date, Orange County office leasing for low-rise buildings totaled 259,091 square feet, or about 89 percent of leased space, while mid- and high-rise buildings saw 33,327 square feet leased, or about 11 percent.
