Flashcom in a Dispute Over Irvine Office Space Lease

A pending lease for 125,000 square feet of prime office space in Irvine is in jeopardy as prospective tenant Flashcom Inc. is disputing terms with the landlord.

Flashcom, a Huntington Beach provider of high-speed Internet access, had signed a lease in March for space in the Park Place office complex, the former home of Fluor Corp.’s Fluor Daniel unit.

The space was to have been a new headquarters for Flashcom. But real estate sources close to the deal said the company has backed out of the agreement.

However, Richard Rasmus, Flashcom’s chief executive, said his company has not pulled out of the lease.

“We are in settlement discussions with our [Park Place] landlord over a disputed matter. I can’t go into detail,” he said.

If the matter is resolved, Flashcom could indeed move into Park Place, Rasmus said.

Flashcom, which supplies digital subscriber line service to businesses and homes nationwide, raised $84.15 million in venture capital in the second quarter this year, more than any other company in Orange County during the second three months.

Last spring, Flashcom said in a document filed with federal regulators that it planned to go public in an initial public offering that would raise as much as $125 million.

The company lost $32.7 million last year on sales of $8.2 million, according to the document filed with the Securities and Exchange Commission.

The Park Place property, with a total of 1.8 million square feet, houses operations of ConAgra, Western United Insurance and Caltrans. It has more than 250,000 square feet of available space.