Three Office Buildings Sold in South Orange County

RANCHO SANTA MARGARITA—Three office buildings have been sold in the Arbours, a 125,000-sq.-ft., campus-style office development. The combined consideration was $7.43 million.

The project, located at Santa Margarita Parkway and Avenida Empresa, includes 14 office/medical buildings ranging in size from 4,605 sq. ft. to 14,906 sq. ft. The Arbours is a project of Los Angeles-based Investment Development Services.

Dave Smith and Adam Wicker, vice presidents with Grubb & Ellis Co.’s Newport Beach office, comprise The Arbours’ exclusive marketing team. Smith and Wicker, along with Jeff Hanson, senior vice president, and Ryan Gallagher, senior associate, represented the seller in the sale of the three buildings.

Two of the buildings were purchased by Foremost Business Parks as leased investments. The third building was sold to an owner/user. All of these buildings have approximately 12,900 sq. ft.

Of the project’s 14 buildings, 10 have been sold, one is in escrow, and three are still available, according to Smith. The available buildings are 12,977 sq. ft., 12,968 sq. ft. and 14,096 sq. ft.

Industrial Park Purchased for $6.5 Million

Urban Pacific Acquires San Pedro Building LONG BEACH—Urban Pacific Builders has completed the acquisition of the 1924-vintage Bank of San Pedro building located at Seventh and Mesa streets in San Pedro.

Urban Pacific plans to convert the edifice to 87 for-sale residential lofts. Construction is expected to start in January, following the processing of entitlements for the project, with completion estimated in early 2005.

“Given the project’s proximity to a thriving arts community, good freeway access, restaurants, Ports o’ Call Village and other waterfront attractions, San Pedro is one of the best-kept secrets in Southern California,” said Mark Tolley, Urban Pacific managing partner, on the firm’s reason for the purchase.

The Bank Lofts at San Pedro will be the first new, for-sale housing project in downtown San Pedro.

“San Pedro is a classic example of a newly emerging downtown marketplace”, said Urban Managing Partner Scott Choppin. “It has many of the characteristics that we look for in the development of urban housing.”

Urban Pacific is also currently developing CityPlace Lofts, part of Long Beach’s downtown CityPlace redevelopment project. That project will include 72 large live/work loft-style units. They are expected to go on sale next spring.

Palm Desert Retail Center Sold for $25.3 Million

PALM DESERT—Sanderson J. Ray-Desert Springs Partners, an Irvine-based commercial real estate owner, purchased Desert Springs Marketplace from Kamehameha Schools of Hawaii.

Grubb & Ellis Co announced the $25.3 million transaction.

Desert Springs Marketplace is an 110,000-sq.-ft. retail center situated on 12.4 acres of land with an adjacent 13-acre vacant development parcel. The property is anchored by a Ralphs supermarket, Rite Aid drug store and a Morton's of Chicago restaurant. It is located directly across the street from the Marriott Desert Springs Resort & Spa.

The sale was part of Kamehameha Schools’ ongoing strategic initiative to rebalance its overall portfolio, which includes reallocating real estate holdings to other asset classes.

Michelle Schierberl, a senior vice president with Grubb & Ellis’ Newport Beach office, represented the seller in the transaction.