IRA Capital purchases single-tenant OC office building for $ 103m


IRA Capital acquired a single-tenant office building in Irvine, Calif., For $ 103 million. The 9-acre office campus is fully leased to Anduril Industries, a growing defense contractor with a valuation of $ 4.6 billion.

Located at 2722 Michelson in the Irvine Business Complex, the property is the former head office of St John Knits and was completely renovated in 2019. The property features 24 foot ceilings, a bright open plan that encourages collaboration, multiple meeting spaces, a fitness center, landscaped courtyards and a well-equipped kitchen and cafeteria.

This is the latest in a wave of investment activity involving IRA Capital this year. The company has actively acquired and sold properties over the past six months. In August he sold its portfolio of medical practices for $ 700 million. Nuveen US Cities Office Fund and an institutional capital partner acquired part of the portfolio for $ 462.9 million.

As part of the transaction, Nuveen acquired 27 properties totaling 747,000 rentable square feet in 13 states, including Arizona, California, Florida, Illinois, Michigan, North Carolina, New Jersey, New York, Pennsylvania, Texas and Wisconsin. Twenty of the 27 properties are located in areas where local governments require an extensive approval process to prove a need to develop new healthcare facilities. This process means that there are strong barriers to entry and regulatory restrictions on new supplies. The portfolio is 99% occupied by 38 tenants.

Then in September, IRA Capital acquired Mail for $ 153 million. Live Nation occupies the majority of the building as a corporate headquarters, while the US Post occupies the remaining 8% of the property. Located at 325 North Maple Drive, Beverly Hills, the four story building totals 102,500 square feet with an open floor plan with 22 foot ceilings and outdoor patios for work and collaboration and is LEED certified. . In 2019, the previous owner completed a $ 44 million renovation.

Single-tenant office buildings have become popular following the pandemic as a hedge against downside risk and uncertainty in the office sector. According to a Colliers report earlier this year, “Investors continue to seek security in the office market, with sales of single-tenant assets nearly doubling from last year’s figures. This represents the biggest jump of the three main types of assets.


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