Lee & Associates Closes $13.5 Million Distressed Office Sale in Tustin
Torrance, CA – May 10, 2012 – (RealEstateRama) — Lee & Associates, one of the largest broker-owned commercial real estate firms in the country, has closed a $13.5 million office sale in Tustin, Calif. The 139,558-square-foot property is comprised of 15621, 15641 and 15661 Red Hill.
Kurt Bruggeman and Ryan Swanson of Lee & Associates Irvine represented a private buyer. The seller, U.S. Bank National Association, Situs Holdings, LLC, was represented by Gary Stache, Pat Scruggs and Anthony DeLorenzo of CBRE.
“This deal had been on the radar screen for about two years before our client purchased the asset as it took quite a while to work through the receivership and foreclosure,” said Bruggeman. “While there have been several distressed office deals in this cycle, it is challenging to find similar assets in the airport area at prices below $100 per square foot.”
Built in 1985, the project is currently 25 percent leased with tenants including State of California, Galaxy Hotels, Transpacific Management and Bastien and Associates. According to Swanson, with such a low occupancy rate, the new owner can accommodate office uses from 3,000 square feet up to 100,000 in multiple buildings.
“The fact that this distressed asset was below the replacement cost really appealed to the buyer.” said Swanson. “The special servicer was trying to recover as much as possible without spending additional capital and found the perfect buyer to acquire the property. They plan to invest a significant amount of capital in the project to upgrade the common areas, HVAC, lighting and interiors to improve the quality of the project and to make it more energy efficient and lease up in the future.”
About Lee & Associates
Celebrating more than 33 years of leadership excellence in commercial real estate, Lee & Associates is the largest broker-owned firm in the nation, with 46 locations across the nation including Arizona, California, Georgia, Idaho, Indiana, Illinois, Kansas, Michigan, Missouri, Nevada, New Jersey, Texas and Wisconsin. With a roster of nearly 700 expert brokers, Lee & Associates provides a wide range of specialized commercial real estate services. Additional information is available at www.lee-associates.com.
