Granite Properties Sells Orange County Campus
The property received significant upgrades.
Granite Properties has sold 100 Bayview, a mixed-use campus featuring 346,335 square feet of Class A office space and a 250-key hotel in Newport Beach, Calif.
Newmark represented the seller and arranged financing on behalf of the buyer, a private investor.
The property previously commanded $125.7 million in 2018 when Granite purchased 100 Bayview from AEW Capital Management, according to Yardi Matrix data. Following the sale, a renovation program kicked off at the 1989-completed property.
Granite upgraded an existing three-story, atrium-style lobby featuring natural light and indoor vegetation, connecting the structure to a newly landscaped patio including several seating configurations for indoor and outdoor meetings. The gym received an overhaul as well, adding an outdoor yoga deck, among other sports programs. The property achieved Wired Gold, LEED Gold and Fitwel certifications.
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The two-building, six-story office campus had a 36-tenant roster with a weighted average lease term of 4.9 years as of September, bringing occupancy to 88 percent.
Among its tenants is Green Street Advisors, which signed a 35,000-square-foot lease deal in 2019 as renovations were underway. One year later, Signature Bank agreed to occupy 11,000 square feet at 100 Bayview, marking its first Southern California office. Best Choice Products also committed to a 53,478-square-foot headquarters lease in 2023, taking over a former coworking space used by Industrious, which was previously a WeWork location.
The property is less than 2 miles from the interchange between U.S. routes 73 and 55, near John Wayne Airport. Several parks, retail venues and quick-service restaurants are within walking distance.
Newmark Co-Head of U.S. capital markets Kevin Shannon, alongside Vice Chairmen Paul Jones and Ken White, together with Senior Managing Director Brandon White, represented Granite in the transaction proceedings. Newmark Co-President of global debt and structured finance Jonathan Firestone and Vice Chairman Blake Thompson arranged the financing for the buyer.
Granite’s office renovations and divestments
As of March, Granite had deployed $2.3 billion in CRE deals since 2021, including acquisitions and development. Its portfolio totaled 11 million square feet of office space at the end of the first quarter.
Last December, the firm divested another Orange County asset. MGR Real Estate paid $89 million for Orange City Square, a 392,523-square-foot campus developed in 1988 and renovated through 2025.
Granite’s efforts to enhance well-being in the office extend beyond 100 Bayview and Orange City Square. The firm has earmarked more than $10 million to maximize safety and wellness across its buildings since 2020.
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