HUNTINGTON BEACH, CALIF. — Prudential Real Estate Investors has acquired One Pacific Plaza, a 384,303-square-foot office campus in Huntington Beach, for $93.6 million. The three-building plaza is located at 7755 Center Ave., just off Interstate 405.
Lincoln Property Company and GEM Realty Capital acquired the Class A plaza in October 2011 through a receivership sale. That sale included the 193,081-square-foot office tower and two mid-rise office buildings, in addition to the adjacent 24-Hour Fitness center and Buca Di Beppo restaurant.
The retail assets have since been sold. Many other retail outlets are also nearby, as the Bella Terra shopping center is just steps away from One Pacific Plaza.
The joint venture has made significant upgrades to the property over the past three years. The lobby, elevators and common areas were all remodeled, while new outdoor courtyards with seating areas were added to the exterior.
“This was a strategic acquisition of a ‘broken’ and distressed asset that we were able to stabilize in less than three years,” says Kevin Hayes, Lincoln’s senior vice president. “We focused on driving premium lease rates in a location-driven market, which required a nuanced understanding of our leverage in each situation. We accomplished this while addressing significant deferred maintenance and upgrading the property to solidify its status as a Class A asset.”
The plaza’s occupancy also increased over this period. It rose from 60 percent in 2011 to a current rate of 80 percent. There are now more than 40 local and national tenants that call the plaza home. Notable tenants include BJ’s Restaurants, Health Net of California and Managed Health Network Inc.
Lincoln will stay on as the plaza’s property manager. The transaction was executed by Eastdil Secured.
Lincoln Property Company is a privately owned real estate firm that focuses on property investment, development, management and leasing. The Dallas-based firm’s development efforts have produced more than 100 million square feet of commercial space and more than 209,000 multifamily units since its inception in 1965.
Prudential Real Estate Investors is the real estate investment management business for Prudential Financial Inc. The firm focuses on core, value-added and opportunistic strategies that allow it to invest directly in real estate. Prudential has been investing in real estate on behalf of institutional clients since 1970. Its gross assets under management total $55.7 billion, with a net asset value of $41 billion, as of the end of last year.
— Nellie Day