MGR Real Estate\u2019s multi-year bet on an improving Orange County office market has passed the $200 million mark, following the purchase of the Orange City Square campus in late December.<\/p>\n
Ontario-based MGR, founded by Orange County resident Michael Rademaker, paid $89 million for Orange City Square, a four-building collection of office and retail buildings located off the Garden Grove (22) Freeway, just south of The Outlets at Orange shopping center.<\/p>\n
The nearly 393,000-square-foot complex, located on a 14-acre site along The City Drive South, traded hands for about $225 per square foot.<\/p>\n
The property includes an 8-story, 187,000-square-foot office at 770 The City Drive S., two mid-rise offices running nearly 98,000 square feet each, and one small retail building.<\/p>\n
MGR said the complex \u201cis a rare combination of Class A office space and neighborhood retail, positioned directly adjacent to a major medical and institutional employment hub.\u201d<\/p>\n
The offices were reported to be about 84% leased at the time of the sale.<\/p>\n
Bellwether Property<\/p>\n
Plano, Texas-based Granite Properties was the seller. Granite had owned Orange City Square since 2012.<\/p>\n
The December deal, among the larger office complex sales in OC for 2025, marks the fourth time Orange City Square has sold since 2007, according to CoStar records.<\/p>\n
Its highest valuation was in 2007, when it sold for nearly $131 million just prior to the Great Recession.<\/p>\n
In 2010, it traded for a substantial discount, $63.5 million, after the complex lost several big mortgage companies as tenants amid fallout from the recession.<\/p>\n
Granite is reported to have paid a little more than $80 million for the complex, which was built in the late 1980s.<\/p>\n
Newmark represented Granite in the just-completed sale. The deal \u201crepresents another example of private capital buying Class-A office product at a massive discount to replacement cost and prior peak pricing at a time where the leasing fundamentals have clearly turned,\u201d Newmark Co-Head of U.S. Capital Markets Kevin Shannon said in a statement.<\/p>\n
Newmark also worked with MGR to secure $57 million in financing to fund the deal.
Rademaker said his company plans to maintain current operations at the complex, while improving the tenant mix, and making some upgrades.<\/p>\n
Trio of Purchases<\/p>\n
The Orange office purchase marks MGR\u2019s third big office acquisition in OC in as many years.
In late 2023, it paid $92.5 million for Costa Mesa\u2019s Canvas office campus, home to apparel company 5.11 Tactical and other tenants.<\/p>\n
The five-office, 551,000-square-foot campus, located alongside the San Diego (405) Freeway, sold for about $168 per square foot.<\/p>\n
In mid-2024, it bought the 2020 Main office tower near John Wayne Airport for nearly $54 million. The 12-story office building, located on the 48-acre Irvine Concourse campus, traded for about $183 per square foot.<\/p>\n
\u201cOC is one of the nicest places in the country to live and work,\u201d Rademaker told the Business Journal after the 2020 Main purchase.<\/p>\n
\u201cIt would be foolish to not take advantage of the properties here when they\u2019re, quite frankly, on sale.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"MGR Real Estate\u2019s multi-year bet on an improving Orange County office market has passed the $200 million mark,…\n","protected":false},"author":2,"featured_media":130436,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[163,165,164],"class_list":["post-130435","post","type-post","status-publish","format-standard","has-post-thumbnail","category-anaheim","tag-anaheim","tag-anaheim-headlines","tag-anaheim-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/130435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=130435"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/130435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/130436"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=130435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=130435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=130435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}