3-Building Orange County Office Campus Changes Hands

December 20, 2021

An 81,600-square-foot, three-building office campus in Orange County has been sold.

The Koll Co. sold Sky Park, located at 17744 Sky Park Circle in Irvine, California, to a private family office.

Terms of the deal were not disclosed.

Originally developed in 1975 by The Irvine Co., the property was acquired by Koll in 2017 for $17.9 million, according to Reonomy data, and extensively renovated in 2019.

Situated on five acres surrounded by a greenbelt perimeter, Sky Park offers both a serene setting and immediate access to the I-405, SR-55 and SR-73 freeways. The property also lies within walking distance to The Square and its 16-plus shops and restaurants, as well as The Irvine Concourse with several eateries and an Equinox Sports Club.

“Sky Park is a quality low-rise project located within Irvine’s strong office market that underwent a recent capital improvement investment,” said Paul Jones, executive managing director of Newmark Group Inc., which represented Koll on the deal. “The buyer views the property as a steady cash flow investment that they plan to hold long term as an asset for future generations.”

“Sky Park has proven to be a historically well-occupied office building with a diversified rent roll that with recent capital infusion will continue to remain competitive for years to come,” added Newmark (Nasdaq: NMRK) Director Brandon White, who also worked on the transaction.

Newmark Co-Head of U.S. Capital Markets Kevin Shannon and Executive Managing Director  Sean Fulp also represented the seller.

The sale comes as the Orange County office market is poised for a post-pandemic recovery, according to Newmark Research, thanks to strong demographics, a growing tech base and diverse tenants across multiple industries. For now, total vacancy increased to 16.1% in the third quarter, up from 13.0% a year ago and the highest it’s been since late 2012. And direct average asking rent was $2.78 per square foot — the same as Q2.