Two Office Buildings Being Sold
As part of a large Southern California buying spree, Arden Realty Group Inc. said it plans to purchase two Orange County office buildings for more than $35 million.
The Beverly Hills real estate investment trust said Thursday it will buy the six-story Crown Cabot building on Crown Valley Parkway in Laguna Niguel and 1821 Dyer, a two-story building in Irvine. It will finance the purchases with the proceeds of an upcoming $260-million secondary stock offering.
The buildings are among nine properties that Arden is planning to purchase in Southern California, which will increase Arden’s holdings to 54 office sites with a total of 8.65 million square feet.
In Orange County, Arden already owns three properties: Anaheim City Centre, Centerpoint La Palma and 5832 Bolsa Ave. in Huntington Beach.
With rents and occupancy on the rise throughout Southern California, many investors and developers like Arden are beginning to tap the public market for funds. Arden completed its initial public offering last October, raising $377 million, most of which it has spent.
“The money availability from Wall Street now is better than it was two years ago,” said Placentia-based real estate consultant Alfred Gobar. However, Gobar said, prices are rising quickly as a result of the frenzied competition from other real estate investment trusts, which could soon put a strain on profits.
In Laguna Niguel, Arden will pay Leisure Colony Management Corp. $28 million for Crown Cabot, which was built in 1989. The office building is one of the largest in south Orange County and houses major tenants such as Ralston Purina, Maxtor International, Motorola and Quaker Oats.
The Irvine building is being purchased from Echo USA Inc. for $7.5 million. The facility is completely leased to Matria Healthcare, which will be moving out by the end of the year.
