The City of Irvine has bought a 57,300-square-foot office building for use by administrative agencies for $13 million.
The city purchased the two-story headquarters of RGP Property at 17101 Armstrong Avenue, the Orange County Register reported. The seller was RGP.
The deal, brokered by CBRE, works out to $227 per square foot. The timing of the move and the location of RGP’s new headquarters were not disclosed. It’s not known what RGP paid for the building.
“This was a great result for both parties, which provided for the seller to downsize and reduce their real estate footprint, and for the buyer the ability to occupy a strategically located asset within the Irvine Business Complex for years to come,” Anthony DeLorenzo of CBRE told the Register.
The city approved the deal for the Class B building, built in 1982 on 2.5 acres, in March.
Three months later, the city reported the building will be renovated for city occupancy, including the roof, mechanical systems and cabling, walls, accessibility and security. The cost of the makeover was not disclosed.
The city is paying $1.2 million to lease two buildings at University Research Park that will serve as temporary quarters until the renovations are completed. The terms and office locations were not disclosed.
The lease price tag will be offset by a $500,000 credit the city negotiated as part of the Armstrong purchase, according to the Register.
Irvine isn’t the only local government taking advantage of an office market challenged by high vacancy, higher interest rates and declining values.
Last month, Los Angeles County struck a deal to buy the 1.4 million-square-foot Gas Company Tower at 555 East 5th Street in Downtown Los Angeles for $215 million, or $154 per square foot. The seller was New York-based Brookfield Properties, which defaulted on a $465 million loan tied to the building.
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- UCLA acquires DTLA office building from Rising Realty
In January, UCLA bought the former Westside Pavilion mall in West Los Angeles for $700 million.
The university is turning it into the UCLA Research Park for the California Institute for Immunology and Immunotherapy, UCLA Center for Quantum Science and Engineering, plus other science and medicine programs.
— Dana Bartholomew
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