TriCentre, a 211.9k sf, office tower in the city of Orange, was acquired by Stanton Road Capital, a Los Angeles-based investment management firm. The price was not disclosed, although we’ve heard investor estimates of around $210/sf, which would put it near $44 mil.
TriCentre is located at 333 S. Anita Dr, at the convergence of the I-5, SR-57, and SR-22 freeways in the heart of Orange County. The 10-story, Class A office asset was built in 1986 and features a continuous glass ribbon exterior, a lobby with Italian marble, Herculite glass, and polished granite flooring, a five-story parking structure, and national tenants including Farmers Insurance and the Department of Consumer Affairs. The property is also minutes from the Outlets at Orange with numerous retail and dining amenities.
Over the past 10 years, ownership has completed numerous upgrades and replacements to common areas, mechanical systems, and the parking structure worth approximately $1 mil. The property is currently 80% leased.
Jeffrey Cole, Jeff Chiate, Rick Ellison, Ed Hernandez, and Nico Napolitano from Cushman & Wakefield’s Orange County office brokered the transaction on behalf of the seller, Hilrod Holdings, with John Harty and Jason Ward from the firm serving as market advisors. Harty and Ward will also serve as leasing agents for the property.
“TriCentre offered a unique opportunity to acquire one of the most recognizable and well-known office assets in Orange County with stable in-place cash flow at a significant discount to replacement cost,” said Cole. “The new ownership will benefit by implementing a modernization plan that will significantly boost achievable rental rates in a submarket where rates have increased over 22% over the past 24 months.”
The sale of TriCentre marks the second largest Class A office building sold in Orange County this year, according to Cushman & Wakefield Research.