Newmark 1 announces it has completed the sale of Stadium Crossings, a four-story, 100% leased, multi-tenant office building in Anaheim, California for $32.5 million. Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Paul Jones, Director Brandon White and Senior Financial Analyst Liam Ogburn, in partnership with Executive Managing Director Sean Fulp and Managing Directors Ryan Plummer and Mark Schuessler represented the seller, Pendulum Property Partners, a locally based commercial real estate owner, developer and manager. The buyer was Kingsbarn Realty Capital, a Las Vegas-based real estate private equity firm.
Located at 2125 East Katella Avenue in Anaheim, Stadium Crossings measures 106,068 square feet and is situated on a 3.3-acre parcel. The multi-tenant office building is anchored by AA credit tenant the County of Orange, which occupies approximately 50% of the building. Prior to the sale, Pendulum Property Partners lined up a lease with the General Services Administration to take the building to 100% occupancy. Other major tenants include NTS, Incenter, Pearson and SunPower Corporation.
“With a location in the heart of the Platinum Triangle submarket, Stadium Crossings offers the new owner a stable investment with future upside as the immediate vicinity is transformed into a 24-hour lifestyle and entertainment hub,” said White.
Originally built in 1999, Stadium Crossing recently completed a $1.3-million capital renovation project that included upgrades to the lobby, elevators, HVAC, restrooms, corridors and landscaping. The building is located in a mixed-use commercial development that provides onsite retail amenities including a food court and three retail pads offering multiple dining options.
Located at the convergence of three major freeways (I-5, 57 and 22) and hub of the Amtrak and Metrolink train lines, the Platinum Triangle has seen a boom of multifamily and retail development in recent years. Stadium Crossing in particular will be a direct beneficiary of the planned development at the adjacent Angels Stadium as well as the creation of ocV!BE, a 115- acre mixed-use live entertainment district.
Sales volume for Orange County office assets was particularly strong in 2021, according to Newmark Research, marking the highest volume since 2017, with several large deals closing during the fourth quarter. The office leasing market is on the path to recovery with occupancy continuing to improve. Vacancy increases have slowed, sublet availability is trending down, supply has remained in check and rental rates are holding strong, all of which set the stage for a healthy recovery for Orange County’s office market in 2022.