By Keith Loria, Contributing Editor
An investor group led by Five Point Holdings, LLC has acquired Broadcom Limited’s 73-acre corporate campus in Irvine, Calif., for $443 million and renamed the property Five Point Gateway.
The Orange County campus consists of nearly one million square feet of planned research and development and office space across four buildings. Broadcom will remain the property’s largest tenant, leasing approximately 660,000 square feet of R&D space pursuant to a 20-year lease.
“This venture adds a new dimension to our company as we start building our commercial portfolio,” Emile Haddad, FivePoint’s chairman & CEO, said in a prepared release. “We believe it is vital for Irvine and the region to create a jobs-to-housing balance that positively impacts all aspects of community life from traffic to lifestyle to more time with family,” Haddad added. “Providing jobs close to where people live is a fundamental aspect of all of our communities.”
Doing Business in OC
FivePoint is the master developer of the site and originally sold the land to Broadcom two years ago, but retained a buy-back option on the site. FivePoint will be the majority owner of the campus through Five Point Office Venture Holdings I LLC, which also includes two affiliates of existing partners of FivePoint in its Great Park Venture.
The property is located at the southeast corner of Great Park Neighborhoods near the San Diego Freeway and Irvine’s Transportation Center.
In addition to Broadcom, FivePoint and homebuilder Lennar will also use space in the campus. The rest of the new office space, which comprises approximately 230,000 square feet, will be leased to other tenants.
“The opportunity to become more enmeshed in the daily life of Irvine’s thriving business community has always been part of our long-term plan,” Haddad said. “We are proud to have Broadcom, a world-class technology company, as our first and largest tenant – and are looking forward to very soon joining it as a neighbor.”
The acquisition was financed with more than $100 million in cash and $339 million in loans. The deal also included “entitlements,” which FivePoint may use to build 734,000 square feet of office space, 1,300 apartments or 1,000 home sites.