Blackstone Takes A $47M Loss On Sale Of Santa Ana Office Towers

Barker Pacific Group and its JV partner Kingsbarn Realty Capital purchased Santa Ana’s Griffin Towers, two 13-story office properties at 5 and 6 Hutton Centre Drive, for $82M.

Courtesy of Barker Pacific Group
The Griffin Towers In Santa Ana

That represents an approximately $47M loss for the property's seller, Blackstone.

Blackstone bought the towers in 2014 from Lincoln Property Co. and Angelo Gordon & Co., paying $129M, according to reports at the time. County property records indicate the towers have not changed hands since then and the owner of the towers is still listed as an LLC connected to Blackstone in public records, since the recent sale has not yet posted.

The towers hold about 560K SF of office and count UKG, Michael Baker International, Psomas, Nations Direct Mortgage, HNTB and the Ayn Rand Institute as tenants.

Barker Pacific announced the sale and price but did not disclose the seller. Kevin Shannon, Paul Jones and Brandon White of Newmark represented the seller. David Milestone and Henry Cassiday of Newmark represented the buyer in its debt financing efforts.

The Orange County office market had an average asking rent of $2.67 per SF at the end of the first quarter of this year, compared with the national average of $2.92 per SF, according to Kidder Mathews. The county's vacancy rate is 12.6%, which KM classified as "substantial."

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Related Topics: Barker Pacific Group , Blackstone
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