Challenge
Irvine Spectrum Bacchus Buildings have historically achieved the highest purchase prices per square foot in the Irvine market. It’s often difficult to make these buildings work as leased-investments due to high purchase prices. Owner-occupiers are able to justify high prices due to low interest rates, benefits of ownership, and rising rents for comparable space in the area.

Case Study
This property is a 4,960 SF two story office building located in the Brenexus Limited Edition in Irvine CA. Our client successfully closed the transaction at $341 /SF with all the furniture included. During escrow, we began marketing the property to find a tenant. The building’s contemporary design attracted multiple offers, including Volvo North America. A new five-year lease with an effective rent of $1.96 NNN was completed shortly after the close of escrow.

Results
This stabilized asset is now valued on a cap rate basis and would sell between a 5% -5.25% cap rate valuing the property at $470 /SF ($107 /SF increase in value).