Blackstone-Owned EQ Office Sells OC Office Complex At A Discount

The Canvas Property In Costa Mesa.

EQ Office, a U.S. office portfolio company owned by Blackstone, has sold an office campus in Costa Mesa for $91.5M.

That is about 10% less than EQ spent about a decade ago to assemble the 553K SF property, called Canvas Costa Mesa, at 3070 and 3100 Bristol St., The Real Deal reported.

The campus was 68% leased at the time of sale, according to a release from Newmark, which arranged $55M in financing for the buyer, SoCal-based MGR Real Estate. Hankey Capital provided the financing.

EQ Office bought 3070 Bristol in 2013, when it was 83% leased, paying $75M, TRD reported. In 2015, it purchased 3100 Bristol for $28.3M. The transactions came out to about $186 per SF, according to TRD. The 2023 sale price for the complex works out to $165 per SF.

“What you own matters, and U.S. traditional office represents less than 2 percent of our global portfolio today versus more than 60 percent in 2007,” a Blackstone spokesperson said in a statement to TRD. “We intentionally pivoted toward sectors like logistics and data centers, which are benefitting from exceptionally strong macro-tailwinds and supply/demand fundamentals.”

In a recent earnings call, Blackstone reported its realizations from real estate sales in the second quarter dropped off by 96% compared to a year earlier.

Blackstone also unloaded a pair of Santa Ana office towers in April, taking a $47M loss in the process.

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