A nearly fully occupied office building in Corona has recently been placed on the market, with an asking price of $15.17 million, or about $244 per square foot. The 62,228 square-foot office building, also called Westgate Center, is being marketed by CBRE offering a long term tenant roster and potential redevelopment opportunities.
The two-story office asset is located at 2280 Wardlow Circle. Built in 1989, the property last traded hands in 2018 when it was acquired by its current owner, The Koll Company. According to public records, the Irvine-based investment firm purchased the property for $10.31 million, or about $165 per square foot.
At 92 percent occupied, the property contains a mix of long standing tenants, including D.R. Horton, one of the largest homebuilders in the nation. The company, which has occupied space at Westgate Center for 21 years, is one of the most active home builders in the Inland Empire and reported a revenue of more than $27.7 billion in 2021.
Other tenants at the property include Penske Logistics, Global CTI, Fantastic Sams and Mercury Insurance Services, among several others.
“At 92 percent leased to an incredible tenant roster, the property provides new ownership with great day one cash flow, strong and secure tenants, and upside potential with in-place rents roughly six percent below market levels,” CBRE states in the listing.
The property is situated on a 3.05-acre site. With zoning that allows for a variety of industrial uses, the office building also offers potential redevelopment opportunities in the future, should a buyer choose to pursue this route.
Additionally, the property benefits from its close proximity to California State Route 91, which sees approximately 288,000 vehicles per day and provides easy access to the rest of Southern California. Westgate Center is also just two miles west of Interstate 15 and a short walk from the West Corona Metrolink rail station.
As a gateway to larger office markets, like Los Angeles and Orange County, the Inland Empire’s market also drives strong tenant demand while offering more affordable prices. According to CBRE, the Inland Empire’s office market finished the fourth quarter of 2021 with a 10.1 percent vacancy rate. Corona’s office supply is also relatively small. With just 49 buildings totaling 2.25 million square feet, the area remains highly competitive, according to the offering memorandum.
