City Tower, the third-tallest office building in Orange County, Calif., has recently found a new owner. The 20-story high-rise was acquired by KBS Capital Advisors from Torchlight Investors, in a $147 million transaction.
According to the seller’s agent, NKF Capital Markets, the buyer of the iconic Class A property paid more than $338 per square foot for the asset. Prior to the sale, the building benefited from a $3 million renovation program, which included improvements to the common areas, namely the corridors, the lobby, the elevator cab interiors, and the restrooms.
“Central Orange County has been seeing an increase in tenant demand, yet no new office construction, which bodes well for rent growth and asset appreciation. That price is testimony to investor confidence in the submarket as well as the value in this core, high-image office tower,” said Paul Jones, SVP for NKF Capital Markets.
KBS Capital Advisors bought the property 78% leased to a roster of high-profile companies, including medical institutions, law firms, private investigation companies, and architecture firms. According to Yardi Matrix data, the building houses 30 tenants, including The Center for Reconstructive Urology, UC Irvine Medical Center, Enterprise Rent-A-Car, Education Management Corp., and Travelers Insurance.
The LEED-certified, 435,177-square-foot high-rise includes 2,000 square feet of retail, all currently occupied by a café, as well as an adjacent six-level parking structure. Located on a 4.92-acre site at 333 City Blvd. West, City Tower offers easy access to three major freeways. Completed in 1988, it’s the third-tallest building in Orange County.