Dune Real Estate Partners and Ocean West Capital Partners, two closely held property investors, paid about $70 million for a 16-story office building in Orange County, California, that was under receivership.
The 307,662-square-foot (28,582-square-meter) building at 2600 Michelson Dr. in Irvine is 52 percent occupied, the companies said in a statement today. In 2007, the peak of local office demand, the rate was 95 percent, they said.
“We’ve seen early signs of improvement in the Orange County office market and believe there is significant value in its long-term fundamentals,” Russell Gimelstob of Dune said in the statement.
Dune, based in New York and led by Daniel Neidich, a former Goldman Sachs Group Inc. real estate executive, has been investing in distressed real estate assets. The company in March agreed to buy the mortgage for Manhattan’s Mark hotel for about $190 million, a person with knowledge of the transaction said at the time.
The Irvine office building, previously owned by MPG Office Trust Inc., the Los Angeles-based landlord formerly known as Maguire Properties, had been under receivership for a year and a half, according to Troy Miller, a principal at Santa Monica, California-based Ocean West.