While office markets across the nation remain stagnant, some continue to see large transactions. In Orange County, several major transactions have taken place over the past several months, including a 111,986 square-foot office campus in Fountain Valley, which traded for $26.45 million, or $236 per square foot. The terms of the transaction were announced in a closing statement from Newmark, which brokered the deal on behalf of the seller, Swift Real Estate Partners. The buyer is an undisclosed Korean investor, according to sources, which plans to occupy a portion of the building at a later date.
The property, also known as Fountain Valley Plaza, is located at 10540 Talbert Avenue and consists of two three-story office buildings over one below-grade level parking garage. The asset also offers flexible floor plates, providing conversion options from 2,000 to 50,000 square feet.
According to public records, Swift Real Estate Partners initially acquired the office campus in 2016 for $21.45 million. Since then, the company completed common area upgrades, including two new lobbies, upgrades to corridors, deck renovations and more.
The property is currently occupied by a number of tenants, including the LA Times, SPEC Services, Magellan Architecture, Terra Mortgage Services and more.
Fountain Valley Plaza is located off Interstate 405, in close proximity to the Santa Ana River. Nearby are a variety of retail assets as well, including Costco and Ralphs.
The Orange County office market has been going strong, with the region reporting the strongest sales volume in 2021 since 2017. According to a fourth quarter office market report from Newmark, Orange County saw several large transactions over the last few months of 2021. In one transaction, IRA Capital purchased a 154,418 square-foot office building in Irvine for $103 million. Amazon also acquired the 637,500 square-foot former Bank of America campus in Brea for $165 million.