Developer SteelWave and an institutional investor sold a 120K SF office building in Tustin, California, for $91M.

JLL represented the sellers of 1382 Bell Ave., a two-story, Class-A flexible office building, according to a press release. It didn't disclose the buyer.

Steelwave purchased the building in 2019. Situated on nearly 6 acres, 1382 Bell Ave. is occupied by one tenant, the county of Orange, which has a lease extending through 2047, The Registry reported.

The property is near the 1,600-acre Tustin Legacy master-planned community and the District at Tustin Legacy, a retail hub.

Office space in Tustin is difficult to come by, according to a second-quarter report from JLL. The direct vacancy rate in the southern portion of the city — south of Interstate 5 — is 2.6%. Overall Orange County vacancy is 13.3%.

However, that vacancy rate is partially attributable to the area's low inventory of office space, which totals less than 1.5M SF. Average direct asking rents are 15% lower than market average at $2.41 per SF.