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five-building office property in Southern California has changed hands, bucking the trend of sluggish office transactions in the region. Denver-based investment firm Sagard Real Estate sold the 185,180-square-foot Tustin Financial Plaza to a joint venture between local real estate firm The Kelemen Company and Kingsbarn Realty Capital for $27.5 million.
The property, located at East 17th Street in north Tustin, Orange County, was 70% leased at the time of sale. Sagard's head of equity, John Maurer, said the deal is part of a broader portfolio repositioning towards industrial and multifamily sectors, which he believes will perform well in the long term.
CBRE Investment Properties' Anthony DeLorenzo, Sammy Cemo, Bryan Johnson, and Greg Sullivan represented Sagard in the transaction. The office market in Orange County remains challenging due to pandemic-related woes and a flight-to-quality trend, with a 14.7% vacancy rate in the third quarter.
Notably, network device provider TP-Link Systems recently acquired a three-story building in Irvine for $40.6 million, which it plans to use as its new global headquarters.
