Orange County’s Thriving Commercial Real Estate Scene: Opportunities at 2300 E. Katella Ave.
The commercial real estate market in Orange County is entering a dynamic phase, especially with the recent decision by Angelo Gordon & Co. to list a prime office property for sale. Located at 2300 E. Katella Ave., this four-story office building spans 69,032 square feet and sits directly across from the iconic Angel Stadium in Anaheim’s bustling Platinum Triangle district. Angelo Gordon acquired this property back in 2019 for $14.53 million, averaging about $210 per square foot. As they seek the best offers, investors keen on tapping into the thriving Orange County market should take note of this opportunity.
The listing is managed by CBRE, emphasizing the property’s strategic position on a 3.2-acre lot. Currently, the office building boasts an occupancy rate of 85%, generating approximately $1.33 million annually in rental income from a diverse range of tenants. However, the lease structure may pose both stability and challenges. While the staggered tenant agreements provide ongoing revenue, about one-third of the occupied space faces lease expiry within the next three years. If fully leased, the building has the potential to yield around $1.5 million in annual income.
What makes this property particularly enticing is the projected growth of the Orange County economy. According to CBRE Econometric Advisors, the county is expected to add 72,000 jobs over the next five years, with rent growth forecasts indicating a 13.4% increase during that period, placing it among the top five markets nationally. Such robust economic conditions enhance the appeal of the 2300 E. Katella Ave. property, situated in a district anchored by numerous entertainment venues. Not only is it across from Angel Stadium, but it is also close to the Honda Center and Disneyland, both of which are continually enhancing their facilities and drawing tourists year-round.
Economic Catalyst: The Role of Tourism in Orange County
Anaheim’s economy significantly relies on its tourism sector. Disneyland, for example, contributes an impressive $5.7 billion to the local economy annually. In alignment with this, Disney has committed $2 billion for upgrades over the next decade, ensuring sustained interest and demand for hospitality and related services. This thriving ecosystem fosters a consistent need for office space among companies serving the hospitality and entertainment industries.
The Platinum Triangle has witnessed substantial redevelopment efforts in recent years, with various new residential and retail projects designed to create a mixed-use environment around the sports and entertainment venues. The corner lot position of the building at 2300 E. Katella Ave. offers unique views of surrounding high-rises and the renowned Angel Stadium, which can be leveraged to attract potential tenants and investors alike.
Strategic Accessibility and Transportation Links
Accessibility is another key advantage of this property. It is conveniently located near major roadways such as Interstate 5, Highway 57, and Highway 22, making it easy for employees and visitors to reach the site. Furthermore, John Wayne Airport is just a 15-minute drive away, and the nearby Anaheim Regional Transportation Intermodal Center adds to the convenience, linking various transport modes for easy commutes. This strategic positioning enhances the property’s appeal to businesses and can be a significant draw for potential buyers.
The involvement of experienced brokers from CBRE, including Anthony DeLorenzo, Sammy Cemo, and Bryan Johnson, further solidifies the potential success of this listing. Their expertise in the local market will undoubtedly contribute to attracting serious buyers interested in capitalizing on this opportunity.
Market Trends and Buyer Interest in Anaheim
The current listing is coinciding with heightened interest in Anaheim’s Platinum Triangle. Earlier this year, notable transactions included ParkTerra and JEN Partners purchasing the Axis business park for $62.5 million, showcasing a keen investor interest in Anaheim office assets. This area is becoming increasingly competitive, especially since JEN Partners also acquired a prominent three-building Goldman Sachs campus for $29.5 million, indicating a shift among investors traditionally focused on residential land and housing developments towards office spaces that promise robust returns.
The overall sentiment in the commercial real estate market suggests a bright future for investors looking into this sector. The confluence of job growth, a vibrant tourism-driven economy, and active redevelopment projects in the Platinum Triangle positions the 2300 E. Katella Ave. property as a lucrative investment opportunity.
The Future of Commercial Real Estate in Orange County
With the commercial real estate landscape shifting rapidly in Orange County, the listing of the 2300 E. Katella Ave. office building marks an essential chapter in the region’s investment story. Interested buyers would do well to explore this opportunity, especially considering the positive economic forecasts and the area’s ongoing development trends.
As more investors realize the potential yield of office properties in Anaheim, the market is likely to continue growing. Opportunities such as this one are becoming increasingly valuable, worthy of serious consideration for both established firms and newcomers seeking to enter the Orange County commercial real estate arena.
For further insights and updates on the Orange County commercial real estate market, please explore resources such as CBRE and Angelo Gordon.
