A commercial office property in North Orange County has been put on the market with an asking price of $10.75 million, or approximately $245 per square foot. According to an offering memorandum obtained by The Registry, the property is 100 percent leased with 7-Eleven serving as an anchor tenant.
Located at 330 Lambert in Brea, the property reaches two stories and offers 43,800 square feet of rentable space. According to public records, the property was built in 1988, and last purchased by real estate investment firm The Miller Family Companies in 2018 for $8.67 million. Since then it has undergone several upgrades and renovations to maintain a modern appearance.
Currently, the property is leased to five total tenants including 7-Eleven, Avita, and Lendistry. With a diverse tenant roster, the property has a 6.5 percent annual cap rate and a net operating income of $699,000. According to the offering memorandum, the weighted average tenancy at the property is approximately 12.7 years.
“330 Lambert provides investors the opportunity to own an institutional quality office building with a high-quality income stream at a pricing level that achieves immediately attractive investment returns,” the offering memorandum states.
The Property is located near various restaurants and retail, with coffee shops like Coffee Bean and Tea Life directly adjacent to the property. Shopping at the Brea Mall is also just 1.5 miles away. Additionally, the property is near the junction of State Roads 90 and 57 providing tenants with easy commutes to and from the property.
While the property in Brea is fully occupied, high vacancy seems to be a general theme for much of North Orange County compared to the rest of the Orange County office market. A 2021 second quarter office market report by brokerage firm JLL showed that the submarket outperformed compared to much of the rest of the county, with a 11.2 percent vacancy rate. While higher than average, the Orange County office market as a whole reported a 15 percent vacancy rate, with South County reporting the highest vacancy at 16.2 percent. However, Orange County is beginning to see more leases signed, the report showed. According to the report, lease transactions with a term of 12 months or less increased by 50 percent year-over-year and by 36 percent compared to the previous five-year average.
JLL, which is also listing the property, did not respond in time to comment.