The real estate firm Lincoln Property Co. purchased an office and retail complex that was in receivership for $76 million.
LPC, in partnership with GEM Realty Capital Inc., acquired the 428,806-square-foot mixed-use complex in Huntington, Calif., known as the Towers at Bella Terra, from San Diego-based receivership, disposition and loan recovery specialist Trigild.
The institutional asset was secured at a 45% discount to the prior owner’s purchase price four years ago and a 28% discount to the previous loan balance.
The Towers at Bella Terra consist of two six-story office buildings and a 12-story office tower. There are also two separate retail pads at the property.
At sale, the complex was 65.4% leased, with tenants including the corporate headquarters for BJ’s Restaurants, Health Net, 24 Hour Fitness and Orbital Sciences Corp.
“We see significant opportunity in the West Orange County submarket and are pleased to be able to step in and maximize the potential of the Towers at Bella Terra, which are already capturing the interest of the brokerage and tenant community,” said Kevin Hayes, senior vice president at Lincoln Property Co.
“We are encouraged by the fact that only days after closing on the deal, we are already in active negotiations with several firms for more than 250,000 square feet of space.”
In May 2010, the Towers at Bella Terra went into a Trigild-managed receivership. The commercial real estate lender Capmark Financial originated a $105 million loan for the complex in May 2007. The complex’s loan went into default in January 2010 prior to the lender filing for bankruptcy protection in October 2010.
LPC plans to rebrand and reposition the property over the next several months and to complete the lease-up of the remaining office space.
“The fundamentals, amenities and pricing of the Towers at Bella Terra are all outstanding,” Hayes said. “We plan on adding even more value to this already thriving complex with a series of improvements to the lobby and common areas, along with landscaping upgrades to draw even more interest from local firms looking for new space.”