Newmark Executes $55 Million Acquisition Financing for Office Asset in Costa Mesa, California

July 20, 2023 9:00 AM

Newmark[1] announces it has arranged $55 million in acquisition financing for Canvas Costa Mesa, a 553,000-square-foot, five-building office complex in the SOBECA District of Costa Mesa, California.

Newmark Managing Director Brian Bowis secured the financing on behalf of the buyer, MGR Real Estate. The asset sold for a total of $91.5 million. Hankey Capital provided the loan to MGR to finance the acquisition.

“Canvas offered an attractive basis relative to comparable properties and replacement costs,” said Bowis. “I’m pleased to have worked with MGR Real Estate for the firm’s first major office acquisition in the Orange County market.”

Located at 3070-3150 Bristol Street, Canvas was 68% leased at the time of sale to high-quality, diversified tenants that include 5.11, Public Media Group of Southern California, Carollo Engineers and Amen Clinics. The property was recently remodeled with inspiration from the local arts community, featuring newly renovated lobbies, outdoor common areas, coffee shop, fitness center, conference center and private balconies. The asset also offers large, efficient floor plates ranging from 22,000 to 40,000 square feet for maximum flexibility.

Canvas is directly adjacent to the I-405 Freeway, with visibility to over 245,000 daily vehicles. The property presents immediate access to the SR-73 and SR-55 freeways and is within walking distance of over 70 dining options and 170 retailers, including the South Coast Plaza Shopping Center.

[1] Dba Newmark Knight Frank in California

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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. For the year ending December 31, 2022, Newmark generated revenues of approximately $2.7 billion. As of March 31, 2023, Newmark’s company-owned offices, together with its business partners, operate from over 170 offices with approximately 7,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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