- 36,907-square-foot multi-tenant office investment offered for sale at $7,500,000 ($203/sf)
- The property is 100% occupied with rents well below market at a current average rate of just $1.58/sf Full Service Gross
- After deducting an artificial 5% vacancy factor, the initial cap rate is 5.62%, which is higher than recent sale comps
- Due to Costa Mesa’s low vacancy under 8%, a conservative market lease rate assumption of $2.00/sf generates a future cap rate of over 8%, plus the additional potential for reserved parking charges
- The property has rare private covered parking, elevator service, two points of entry just off the 55 Freeway, and recent renovations include new restrooms in 2019, new digital directories, and new LED lighting upgrades
- With an asking price of just $7,500,000, the property is being offered at less than half of the estimated replacement cost of $15,500,000
- The traffic count at Newport Blvd and Fairview Ave is 170,627 cars per day
