Introduction to Koll Center Newport Buildings
MetLife Investment Management is the new owner of a two-tower office campus in Newport Beach.
The San Francisco-based firm paid $70 million via the assumption of a loan for the East and West Towers of Koll Center Newport, the Orange County Business Journal reported. The sale at 4000 MacArthur Boulevard is below the outstanding $108.5 million loan on the property, per a trustee deed related to the transaction.
Details of the Transaction
Agoura Hills-based Beacon Default Management acted as trustee in the transaction for the 376,871-square-foot office portfolio. At the time, it was the largest reposted default on a loan tied to an office property in the John Wayne Airport area in more than five years, according to the Business Journal. Prior to the loan sale, Hyundai Capital America was a tenant at the towers and is reportedly in the process of removing its signage from one of the buildings.
History of Koll Center Newport
Koll Center Newport was developed by The Koll Company in 1979. The West Tower spans 177,925 square feet of office space over 10 stories; the East Tower is also 10 stories tall with 198,856 square feet of office space.
Previous Transactions
The last reported transaction for the property involved New York-based Goldman Sachs Group buying the two buildings from Houston-based Hines in 2017 for $176.5 million, or $468.44 per square foot. That transaction was a recapitalization of the asset where Hines brought in Goldman Sachs to replace its original partner Oaktree Capital, keeping a 5 percent interest in the property while Goldman Sachs owned the remaining 95 percent, according to CoStar data cited by the Business Journal.
Other Recent Transactions in Newport Beach
Elsewhere in Newport Beach, earlier this month, locally based real estate company Cress Capital bought a 215,000-square-foot office building at 1301 Dove Street for $41 million, or $191 per square foot. Phoenix-based Western Alliance Bank sold the property after seizing it in foreclosure this year. Ocean West Capital Partners and Rockwood Capital bought it in 2021 from PGIM for $64 million, or approximately $8.3 million less than what PGIM paid for it in 2015.
Conclusion
The sale of Koll Center Newport to MetLife Investment Management marks a significant transaction in the Newport Beach office market. The property’s history and previous transactions demonstrate the complex and evolving nature of commercial real estate investments.
FAQs
- Q: Who is the new owner of Koll Center Newport?
- A: MetLife Investment Management.
- Q: How much did MetLife Investment Management pay for the property?
- A: $70 million via the assumption of a loan.
- Q: What is the total square footage of the office portfolio?
- A: 376,871 square feet.
- Q: Who developed Koll Center Newport?
- A: The Koll Company in 1979.
- Q: What was the price per square foot in the 2017 transaction involving Goldman Sachs Group?
- A: $468.44 per square foot.
