Newmark Knight Frank (“Newmark”) announces it has arranged the sale of AD/6, formerly Deere Alton Business Park. The repositioned, six-building corporate office complex in Santa Ana, CA sold for $42.8 million.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Paul Jones and Sean Fulp, Managing Director Mark Schuessler and Senior Associate Brandon White represented the seller, Preylock Holdings. The buyer was Henghou Investment Holding, Inc., headquartered in Zhejiang, China.
“AD/6 is a stable, incoming-producing property that is well positioned for the buyer to capitalize on growth-oriented companies looking for space at an attractive market rent,” said Jones. “This sale is indicative of a notable increase in foreign capital, like Henghou Investment Holding, Inc., acquiring office assets throughout Southern California, and the Western U.S.”
The property, located at 1920, 1924, 1928, 1932, 1936 and 1940 East Deere Avenue, consists of six, recently repositioned corporate office buildings totaling 188,714 square feet. The property is currently 87% leased to a diverse mix of local and nationally recognized tenants. Each building features contemporary interior finishes, renovated common area corridors, expansive window lines providing ample natural light, tall ceiling heights, high corporate visibility and abundant surface parking.
The Greater Airport Area submarket’s accessibility throughout the greater OC Metro, coupled with the presence of John Wayne Airport, has continued to attract a highly educated and skilled workforce. The average asking rent has experienced healthy growth year-over-year, all things considered with the impact of COVID-19. Space inquiries are increasing, and many tenants plan a phased return to the office in the second half of 2021. Vacancy will remain at elevated levels in the near-term as the construction pipeline continues to deliver, but sizeable move-ins will help the market return to equilibrium later this year, according to Newmark Research.
About Preylock Holdings
Preylock Holdings is a real estate investment firm that owns and operates more than $3 billion in AUM including 3.5 million SF of office and 4.2 million SF of industrial. The firm is headquartered in Los Angeles and was founded in 2016.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Our comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, growing startups to leading companies. In 2020, Newmark generated revenues in excess of $1.9 billion. Newmark, together with London-based partner Knight Frank and independently owned licensees, operates globally from approximately 490 offices with 19,300 professionals.
