New York Life Real Estate Investors has sold an 11-story office building in Irvine for $37 million, less than half of what it paid for it a decade ago.
The New York-based unit of New York Life Investments sold the 234,400-square-foot building at 18201 Von Karman Avenue, L.A. Business First reported. The buyer was undisclosed.
The deal works out to $158 per square foot. Brokers Michael Leggett, Will Poulsen, John Rankin and Tim Donald of JLL represented the seller, and the brokerage represented the mystery buyer, a private local firm that owns three properties next door, according to JLL.
New York Life Real Estate Investors bought the Class A building in 2015 for $82.5 million, or $352 per square foot.
The white building with bands of floor-to-ceiling windows, built in 1985, was revamped in 2016. It includes a modern lobby and a parking garage for 936 cars.
At the time of sale, it was 43 percent leased to tenants such as Alliance Healthcare, Revance, Center Street Lending and First Integrity.
The building at “18201 Von Karman generated quite a bit of investor interest, ranging from institutional investors to private buyers along the West Coast, who saw the value-add potential of the highly ‘amenitized’ asset,” Poulsen of JLL said in a statement.
The sale comes after Los Angeles-based CBRE Investment Management sold a 16-story office tower in Irvine for $42 million, a 65 percent drop from its previous sale, according to L.A. Business First.
The Orange County office market had nearly 4 million square feet in sales “by the end of last year,” a 33.2 percent decline from 2023, according to a fourth-quarter report from NAI Capital. The average sales price fell 23.4 percent to $212 per square foot, from the previous three months.
Occupied office space increased by 353,400 square feet to more than 110 million square feet in the fourth quarter, cutting the OC office vacancy rate to 12.3 percent. NAI Capital credited the growth in demand to “motivated landlords offering concessions and flexible lease terms.”
New York Life Real Estate Investors, founded in 2013, has $69.7 billion in assets under management, according to its website.
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