IRVINE, Calif. – August 31, 2017 – Cushman & Wakefield announced today the sale of a fully leased 144,906-square-foot (sf) Class A office/R&D building located at 26200 Enterprise Way in Lake Forest (Orange County), California. Since its construction and build-to-suit design in 2000, the property has long served as the main corporate headquarters building for Panasonic Avionics Corporation as part of its larger 18-acre, seven-building 500,000-sf global headquarters campus in Lake Forest.
Barings Real Estate Advisers, part of Barings LLC, one of the world’s largest diversified real estate investment managers, sold the single-tenant net lease investment property to Drawbridge Realty, a San Francisco-headquartered real estate investment company.
A Cushman & Wakefield brokerage team consisting of Capital Markets specialists Jeffrey Cole, Ed Hernandez, and Nico Napolitano of the firm’s local Irvine office represented the seller in the disposition, with John Harty of the same office also providing local market advisory.
Mr. Cole, Executive Managing Director, said, “The stability of this high-profile credit tenant investment property is augmented by its location in Orange County, which has reached its lowest vacancy in a decade and the second highest average asking rent in 10 years. These strong market fundamentals combined with an advantageous financial profile, high-quality construction, and a desirable credit tenancy created an outstanding investment opportunity in Southern California.”
The 144,906-sf institutional-quality, Class A office/R&D building spans two stories and features attractive designs and finishes, large floor plates with flexible configurations, and abundant surface parking.
Mr. Hernandez, Director, said, “Functioning as Panasonic’s corporate headquarters, 26200 Enterprise Way is host to executive offices and critical lab areas, including separate engineering and laboratory space for each of the company’s distinctive airline clients. The company has maintained the property to the highest institutional standards with substantial investment in tenant improvements during its 18-year tenancy.”
He added, “These improvements have demonstrated Panasonic Avionics’ commitment to the property, while limiting future costs for a new owner and preserving the property’s status as a top-tier single tenant office building in Lake Forest. Further, with millions of dollars invested, Panasonic Avionics has established a dominant presence in Lake Forest.”
26200 Enterprise Way provides an ideal location in South Orange County, considered as a major tech hub. Strategically located within Pacific Commercentre, a sought-after master-planned business park, the property offers an exceptional location with exceptional regional access via several nearby freeways, as well as proximity to desirable executive residential communities and a wealth of restaurants, retailers and entertainment.
According to Cushman & Wakefield’s latest market reports, South Orange County displayed an overall office vacancy of just 6.3% in the second quarter of 2017, the lowest of any sub-county office market, while its R&D/flex inventory commanded a mere 1.6% vacancy rate at midyear.
About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.