T
he city of Irvine recently purchased a two-story office building spanning 57,300 square feet for $13 million. The seller was RGP Property, and the deal was facilitated by CBRE. This acquisition works out to $227 per square foot. While the timing and location of RGP's new headquarters remain unknown, Anthony DeLorenzo of CBRE expressed satisfaction with the outcome, stating that the deal allowed RGP to downsize and reduce their real estate footprint while providing the city with a strategically located asset within the Irvine Business Complex.

    The city council approved the purchase of the Class B building in March, which was constructed in 1982 on a plot of land measuring 2.5 acres. Following the acquisition, the city plans to renovate the building to accommodate administrative agencies. However, the cost of these renovations remains undisclosed.

    As part of the deal, the city will lease two buildings at University Research Park as temporary quarters until the renovations are completed. The terms and locations of these offices were not disclosed, but the lease price will be offset by a $500,000 credit negotiated as part of the Armstrong purchase.

    Irvine is not alone in taking advantage of the current challenges in the office market, which includes high vacancy rates, increased interest rates, and declining property values. Los Angeles County recently agreed to purchase the 1.4 million-square-foot Gas Company Tower at 555 East 5th Street in Downtown Los Angeles for $215 million or $154 per square foot. The seller was New York-based Brookfield Properties, which defaulted on a $465 million loan tied to the building.

    In January, UCLA also made a significant real estate purchase, acquiring a DTLA office building from Rising Realty. This acquisition is part of UCLA's plan to establish the UCLA Research Park for various science and medicine programs, including the California Institute for Immunology and Immunotherapy and the UCLA Center for Quantum Science and Engineering. Additionally, in January, UCLA purchased the former Westside Pavilion mall in West Los Angeles for $700 million, which they plan to convert into the UCLA Research Park for these programs.