Drawbridge Expands Orange County Presence With $98M Office Campus Buy
As part of its effort to further expand in Orange County, Drawbridge Realty has purchased a 390,600 SF, two-building corporate office campus in Santa Ana for $97.5M.
A JV of PCCP and Brookhollow sold the The Pacific Center, which it had acquired in 2015 for $44M, according to CRE data site Reonomy.
Newmark Knight Frank's Kevin Shannon, Paul Jones, Brunson Howard, Blake Bokosky and Brandon White represented the seller.
In an interview, Drawbridge Vice President of Investments Chris Elmendorf said the acquisition of the corporate office campus allowed the company to control a large block of land in the area. Drawbridge owns a 300K SF office campus at 1700 East Saint Andrews Place, which is next door to the Pacific Center. Drawbridge purchased the 1700 East Saint Andrews campus in 2016.
"We were familiar with the submarket, the location and the greater Orange County story," Elmendorf said. "When this property came into market, it gave us essentially 37 acres of contiguous land ownership. ... This is going to be a strong long-term investment."
Both properties fall within a designated opportunity zone. However, Drawbridge — for now — is not taking advantage of the tax benefits of the federal program, Elmendorf said.
Renovated in 2017, Pacific Center is centrally located in the John Wayne Airport submarket.
The office campus is currently 85% leased to four tenants: Nationstar Mortgage, Advantage Sales and Marketing, Collectors Universe Inc. and Career Networks Institute.
With the acquisition, Drawbridge now owns and manages four Orange County office campuses — two in Santa Ana and two in Lake Forest — totaling a little more than 1M SF.
