Work Begins on $225-Million Office Project Near John Wayne

After more than seven years without any new office development, construction is underway on the second major new office complex in the John Wayne Airport area.

Phoenix-based Opus West Corp. on Thursday began work on the first phase of a $225-million project to be known as Opus Center Irvine at Main and MacArthur. The first phase of the project, a 12-story, 225,000-square-foot office building, is scheduled to open in September 1999.

The speculative building doesn’t have any tenants, but Opus is in negotiations with several potential companies, said Tim Strader, manager of real estate development for Opus.

“We think the market’s right, the location’s right and the time is right for another Class A office building in Orange County,” Strader said.

Opus also plans to build a 16-story, 350,000-square-foot building and a 12-story, 282,000-square-foot building on the site.

The property has been zoned for a high-rise since the 1980s, but a glut of space had prevented the land from being developed. Opus recently acquired the land for an undisclosed sum. The project is part of the Irvine Concourse that also is home to the Sports Club Irvine, several office buildings and hotels.

Opus also will add onto an existing parking garage at the site with each step of development, Strader said.

More than half a dozen projects near the airport have been announced, but only Opus and the first phase of the $38-million Koll Center Irvine North--an eight-story building scheduled to open next year--are under construction.

Vacancy rates have declined for 10 consecutive quarters in the airport area, plunging to 6% from 25% earlier this decade, according to CB Richard Ellis, a major commercial leasing firm. In addition, rents in high-rise offices have risen to nearly $3 per square foot.