Planning For Takeoff: In Reported $55M Deal, LaSalle Buys Office Tower In Orange County Airport Submarket
LaSalle Investment Management has acquired a high-rise office tower in the Orange County Airport submarket for a reported $55M.
LaSalle purchased Lakeside Towers at 4 Hutton Centre Drive in Santa Ana from seller Lakeside Partners through the LaSalle Income & Growth value-add fund series, according to CRE data site Reonomy.
The building sold for $55M, Commercial Property Executive reported, citing YardiMatrix.
Company officials said the 216,800 SF office building, built in 1988, is strategically located in the middle of Orange County and has significant upside.
LaSalle is planning a capital improvement project for the 10-story building, including upgrading the lobby and common areas and bringing in additional tenant amenities to enhance its appeal. The property was renovated in 2008 and 2012.
A LaSalle spokesperson had not replied to an email query about the acquisition and building improvement plans as of press time.
“The acquisition of 4 Hutton Centre is a great fit for our portfolio, and aligns with our objective to reposition well-located office properties to core assets through our active asset management program," LaSalle’s Income & Growth Funds Chief Investment Officer Joe Munoz said in a news release. "Office property fundamentals in the airport submarket continue to strengthen, and we expect demand to continue to exceed supply in support of income growth.”
The building is currently 80% occupied by a diverse mix of 21 tenants.
Vacancy in the Orange County office market was 11.34% at the end of the first quarter, according to Voit.
The Voit report stated it expects office vacancy to continue to trend downward throughout the year based on steady job growth, consumer confidence and growing tenant demand.
"The Orange County office market continues to strengthen with steady growth from technology, healthcare and financial services, providing diversification that was not present in the submarket during the previous real estate investment cycle,” LaSalle Managing Director of Acquisitions Erick Paulson said in the news release.