Newmark Executes $22.5 Million Sale of Office-to-Apartment Conversion Property in Orange County, California

April 27, 2023 9:00 AM

Newmark[1] announces the $22.5 million sale of City Centre I, a 6.8-acre, multifamily redevelopment project located at 625 The City Drive South in Orange, California.

Newmark Co-Head, U.S. Capital Markets Kevin Shannon, Executive Managing Directors Paul Jones and Ken White, Senior Managing Director Chris Benton, Managing Director Anthony Muhlstein and Director Brandon White represented the undisclosed seller. The buyer was Watermarke Properties.

“City Centre I was an attractive covered land play in Central Orange County that received strong interest from a wide range of buyers and capital sources,” said Jones. “The existing asset offered in-place cash flow, while the buyer secures entitlements for a new multifamily development.”

The current property is a Class A, 150,161-square-foot office building suitable for multifamily or mixed-use conversion. Current zoning designations for the site allow for up to 60 units per acre. Primary use of the site’s ground floor is intended for commercial retail.

The property is situated in a transit-oriented location with direct access to SR-22, I-5 and SR-57 freeways and adjacent to Outlets at Orange, the area’s premier outlet shopping destination, and numerous other retail and dining amenities.

The City of Orange has been undergoing significant redevelopment in the past several years, with state and local mandates driving the push for more housing units. Currently, over 56% of housing units within a one-mile radius of City Centre I are renter occupied, signaling a strong renter demographic for a suburban market.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of approximately $2.7 billion for the year ending December 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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[1] Dba Newmark Knight Frank in California