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Situation
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.
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Strategy
Market-specific renovations were carried out to improve the standards and appeal of the building that aligned with its competitive set. Following an aggressive marketing campaign, 14 lease transactions were completed.
Three additional lease transactions were completed, increasing the occupancy and overall asset value to an eventual buyer.
Results
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 in the South County submarket for the first 8.5 months of 2021.
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