Medical Office, Newport Beach
- Address: 180 Newport Center Dr, Newport Beach, CA
- Building Area: 39,739 SF
- Land Area: 50,922 SF
- Occupancy: 68%
- Year Built: 1974
- Sales prise – $10,200,000
- Prise/SF – $256,67
- Cap Rate – 6.5%
The seller’s property was on a ground lease owned by the Irvine Company. The ownership consisted of two silent partners and one that operated an executive suite business inside the building. Disagreements on how the building was being operated, resulted in the partners’ decision to sell.
The property was repositioned and remodeled and a package was prepared to create vision for potential investors. Part of the analysis was complex due to the fact that the building was on a land lease and the buyer would not obtain fee simple interest.
Once the angles were fully understood and a marketing plan was prepared target buyers were located. Online marketing and email campaigns uncovered a local add-value buyer that understood the upside of the property. This allowed it to sell for a record price per square foot of $256.67 on a ground lease.