Atrium Towers Reportedly Sold for $80 Million

The Atrium--two 10-story office towers connected by a glass atrium--has been sold for more than $80 million, making it the most expensive building sold in the county in the last year, real estate sources said Monday.

Developer French & McKenna Co. sold the structure to Hoyogo Real Estate USA Inc., which was described as a Japanese real estate syndicator. Executives from both companies couldn’t be reached for comment.

The building has 336,000 square feet of space and is 95% leased, giving it one of the best occupancy rates in the John Wayne Airport area. It opened in late 1986.

Real estate industry sources said developers Tony French and Chuck McKenna had been trying to sell the building for some time. French & McKenna, the sources said, had borrowed heavily to construct and operate the building while it was leasing up.

Those sources called the price--said to be in the low $80-million range--”aggressive,” a real estate euphemism for high. But Japanese investors can borrow money at lower interest rates, so they tend to be able to afford higher prices.

Buildings in the airport area--of which the Atrium is one of the most distinctive--average vacancy rates of more than 20% because there are so many new buildings there.

To differentiate the Atrium and lure tenants, the developers built a landing pad for a helicopter on the roof of one tower.

French & McKenna will move on to redevelop a 10-acre parcel near Main Street and Von Karman Avenue in Irvine with partner Aetna Realty Investors, the company said in a written statement. The property now contains two buildings occupied by Western Digital.