BH Sees Rent Max Opportunity in Freeway Corporate Park
By: Lisa Brown
In the past four years, several institutional owners have bought properties in the Orange County Airport Area/Irvine Business Complex in Santa Ana to implement repositioning strategies. In the process, these investors have pulled approximately 1.7 million square feet of class-B low-rise office product off of the market.
Los Angeles-based BH Properties recently got in on the action with its acquisition of Freeway Corporate Park, a 128,266-square-foot two-building multi-tenant office complex for $21 million. The campus-style corporate park sits at 2501 Pullman St. and 1700 E. Carnegie Ave., a highly visible location on the Costa Mesa Freeway that carries approximately 375,000 vehicles per day.
The property is currently 56 percent leased. Its major tenants include Iteris and Orange County Head Start.
With 55,879 square feet of vacant space including the entire 26,000-square-foot second floor at the Pullman Street building, BH Properties sees an opportunity to maximize rents with the remaining space at the property, which has benefited from $550,000 in capital enhancements.
“The Freeway Corporate Park provides us with a unique opportunity to secure an updated office complex in a highly visible part of Orange County,” said Andrew Van Tuyle, senior managing director, Investments. “With shrinking class-B supply, there is an opportunity for us to maximize rents and stabilize the asset.”
Freeway Corporate Park is near Tustin Legacy and a short drive to the retail destinations of The District, South Coast Plaza, Flight Mess Hall and Von Karman Plaza.
The Newmark Knight Frank team led by Kevin Shannon marketed the property for sale on behalf of the seller.