The subject property, a 73,000 square foot office and medical office building located at 24012 Calle De La Plata in Laguna Hills, CA, lacked an identity or branding, and was often overlooked by tenants. There was also low leasing activity due to COVID-19.
Market specific renovations were carried out, to improve the standards and appeal of the building in-line with its competitive set.
Following and aggressive marketing campaign, 14 lease transactions were completed, totalling more than 25,000 square feet.
Through Stream’s knowledge of the market, the team knew Healthcare Realty was active and reached out directly to the owner to discuss purchase options. Unfortunately, the offer did not meet ownerships threshold to sell the asset.
Three further lease transactions were completed, increasing the occupancy and overall asset value to an eventual buyer.
The building was sold off-market to a publicly traded REIT just 45 days from signature on the LOI.
Healthcare Realty (REIT) purchased Saddleback Professional Center (SPC) for $24.6 million, an improvement of roughly 22% (or $4.375 million) over initial offers. This purchase was the single largest building transaction the South County submarket for the first 8.5 months of 2021.