LAKE FOREST, CALIF. (June 17, 2015) – Foster City, Calif.-based investment advisor Bailard Inc., in conjunction with CT Realty of Aliso Viejo, Calif., has acquired the three-building, Class A Palm Terrace office complex in Lake Forest, Calif. Bailard and CT Realty acquired the 155,795-square-foot property, located at 25521, 25531 and 25541 Commercentre Dr., for $30 million from LaSalle Investment Management.
Palm Terrace is home to the corporate offices for Del Taco and serves as the Orange County headquarters for Portfolioco, Anyone Home Inc. and Parsons. The three two-story buildings offer approximately 52,000 square feet each and are 90 percent leased. The building at 25521 Commercentre Dr. is fully leased with the remaining two buildings offering space ranging from 2,348 square feet to 20,913 square feet.
Located on a 9.4-acre site, Palm Terrace offers exceptional freeway access to Interstate 5 and the 241 Toll Road. The property features a campus environment with outdoor eating area and courtyard as well as close proximity to a variety of retail amenities, including a variety of food options and 24-Hour Fitness. Interior finishes and common areas for the buildings have marble flooring, granite countertops and stainless steel staircase railings, while tenant suites offer over-sized windows and high ceilings to allow for ample natural light. The buildings also meet all new ADA requirements.
Amenities at Palm Terrace include onsite property management, space planning services for tenants, roaming security guards for after hours, and flexible cabling, telecommunication and fiber options. Floorplans can be demised to meet the needs of a variety of tenants. The property also features multiple entrance points with abundant surface parking surrounding the buildings.
Longtime Orange County real estate investment and development firm CT Realty will serve as the asset manager and provide professional management services. Jay Nugent and Greg Puccinelli with JLL’s Irvine, Calif., office will retain the leasing assignment.
The project is located within the highly desirable South Orange County submarket. At 10.5 percent vacancy, South County has the lowest vacancy of any submarket in Orange County, according to Steve Provencio of CT Realty. Provencio said the tight submarket is the result of recent leasing velocity, citing a vacancy rate of 15.6 percent for the submarket just two years ago.
“Over the past few months, rents and absorption in South Orange County have been increasing while tenant concessions and vacancies have been decreasing – especially in the airport and Irvine Spectrum submarkets which created additional opportunities in Lake Forest in southeast Orange County,” Provencio said. “Because of our local presence and knowledge of the marketplace, we were able to quickly identify and aggressively pursue the high-quality Palm Terrace asset.”
Bob Prendergast and partner Baker Morphy with JLL’s San Diego and Irvine, Calif., respective offices represented LaSalle Investment Management in the transaction. CT Realty represented the purchaser.
About CT Realty
Based in Aliso Viejo, Calif., CT Realty has completed more than 220 transactions with value in excess of $3 billion since its establishment in 1994. More recently, the primary investment focus has been industrial properties in Southern California and Texas, with more than six million square feet of existing buildings and more than 700 acres of land acquired since 2010. More information about CT Realty may be found at http://www.ctrinvestors.com/.
About Bailard Inc.
Bailard Inc. is an employee-owned real estate investment and advisory firm based in Foster City, Calif. Established in 1969, the company offers traditional and alternative investment strategies for institutional and private clients worldwide. For more information, visit http://www.bailard.com/.