LOS ANGELES, CA – June 13, 2012 – (RealEstateRama) — Charles Dunn Company, one of the largest full-service regional real estate firms in the Western United States, has completed the $19,255,000 sale of two medical-related office buildings totaling approximately 100,000 square feet in the Orange County, Calif. cities of Cypress and Costa Mesa. The buildings are fully occupied by WCCT Global LLC, an early phase drug development Clinical Research Organization (CRO).
Darrell Levonian, Justin Mendelson and Fred Sheriff from the Charles Dunn Company’s Century City office represented the buyer Davies-Torrance Trust from the San Francisco area, and the seller, a private family LLC who also had a significant ownership interest in the tenant, WCCT Global.
“This transaction was complex and multifaceted. It spanned over one year from start to finish and involved the marketing team’s ongoing advisory input throughout the entire process,” said Darrell Levonian, executive managing officer with Charles Dunn Company. “Each member of our team brought their own unique set of skills to the table to successfully execute the two-property portfolio sale on behalf of the ownership.”
Levonian added that the relationship with the seller was born out of a disciplined prospecting protocol by Mendelson. The preference of the ownership was to sell the buildings to a single buyer, reorganize the debt and equity structure of its real estate holdings, and to diversify its overall portfolio.
“After providing a detailed property valuation and marketing strategy, and then winning the assignment, the team began a selective, but aggressive marketing initiative for the properties to institutional buyers, medical and office REITs, and high-net worth investors throughout Southern California, the West, and the nation,” said Fred Sheriff, executive managing director with Charles Dunn Company. “The process was interrupted midpoint on a confidential basis as WCCT Global was being actively approached by various equity firms to buy an interest in the business based on WCCT’s growth and success over the past several years. Darrell, Justin, and I participated in the vetting process by providing real estate market input to the equity firm. In addition, the leases were restructured based on our recommendation.”
“After going back to the market, we procured 11 offers from a variety of buyers including REITs, institutional investors and high net worth buyers,” said Justin Mendelson, of Charles Dunn Company’s investment services group. “We selected a buyer and worked with their lender, US Bank, to secure the loan and ensure a smooth closing process. We provided an analysis that effectively differentiated and positioned the properties to attract investors who had a long-term holding objective. Both properties have special zoning that allows for overnight stay by test participants.”
Below is information on each of the properties:
• 5630 Cerritos Avenue in Cypress totals 76,032 square feet on 3.55 acres. Built in 1989, the two-story medical office property also includes a warehouse/distribution capability, and offers excellent entry and exit points from Cerritos Avenue.
• 3545 Howard Way in Costa Mesa totals 23,125 square feet on 1.13 acres. Built in 1986, the two-story medical office property is located within MP Industrial Park. If also offers excellent entry and exit points from Howard Way.
“The medical-related office property market is in high demand as investors seek the stability and participation in the ever-growing field of new prescription drug development,” said Levonian. “Well-located, single tenant net-leased properties with a proven tenant such as in this portfolio, presented an opportunity for the buyer to have a long-term, management-free investment return in this growing market sector. Additionally, the structure of the leases offered an excellent return and inflation protection for years to come.”
About Charles Dunn Company
Charles Dunn Company is one of the largest full-service regional real estate firms in the Western United States. Established in 1921 and headquartered in Los Angeles, the firm’s brokerage practice continues to be a market leader. The firm also manages more than 20 million square feet of office, industrial, retail, residential and mixed-use properties for third party clients and provides construction management, architecture and design, general contracting and capital markets services. With more than 260 team members in nine offices, Charles Dunn Company’s reach extends far beyond its physical locations, as its experienced professionals leverage their market knowledge, relationships, and expertise to achieve and exceed client expectations. www.charlesdunn.com