News Summary
Cress Capital LLC has acquired the 10-floor office building at 1301 Dove St. in Newport Beach for $41 million. This acquisition comes amidst a decline in market value for office properties in the region. Previously owned by Western Alliance Bank, the property underwent significant renovations in 2018. Market experts observe ongoing challenges for suburban office spaces, but Cress Capital aims to enhance the property value and tenant experience.
Newport Beach, CA – Cress Capital LLC has acquired the 10-floor office building located at 1301 Dove St. in Newport Beach for $41 million, translating to $190.82 per square foot. The sale concluded on August 25, with the property taken off the market shortly before, according to data from CoStar.
The office tower, previously owned by Phoenix-based Western Alliance Bank, was home to notable tenants including the law firm Winthrop Golubow Hollander LLC and rubber manufacturer CRM. Originally built in 1980, the property underwent significant renovations in 2018, which cost approximately $11.5 million.
Cress Capital was established in 2012 by Ryan Parkin as a real estate company, later evolving into a principal investing firm in 2014. The acquisition of 1301 Dove St. adds to the firm’s growing portfolio in a challenging market.
Prior to Cress Capital’s ownership, 1301 Dove St. had a complicated ownership history. In 2021, a joint venture between Ocean West Capital Partners and Rockwood Capital purchased the building from PGIM for $64 million. This figure represented a loss from PGIM’s earlier acquisition price of $72.3 million in 2015, highlighting a decline in market value in recent years.
In a turn of events, the joint venture was unable to meet financing obligations, defaulting on about $41.7 million in outstanding debt in early 2023. This led to the surrender of the property to Western Alliance Bank through a deed in lieu of foreclosure. The $41 million sale to Cress Capital effectively satisfied the unpaid debt owed by the joint venture, marking a notable financial turnaround for the bank.
Market experts have observed a trend of declining prices for office properties in Orange County. For instance, the Axis business park in Anaheim was acquired by ParkTerra and Jen Partners for $62.5 million in July, reflecting a 25% discount from its prior sale in 2018. Similarly, during January, New York Life Insurance sold an 11-story office building in Irvine for $37 million, which was less than half of its earlier purchase price of $82.5 million in 2015.
The acquisition of 1301 Dove St. by Cress Capital fits within this broader context of shifting market dynamics, illustrating the challenges and opportunities suburban office spaces face as businesses respond to evolving work patterns and economic pressures. This strategic investment by Cress Capital may position the firm to take advantage of potential value recoveries as the market stabilizes in the coming years.
As Cress Capital embarks on its new venture with 1301 Dove St., the company is likely to tackle ongoing market changes and the implications of the broader economic landscape while remaining focused on enhancing the property value and tenant experience.
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Additional Resources
- Commercial Observer: SoCal Distress Office
- Orange County Business Journal: Newport Beach Office Tower Trades for $41 Million
- Wikipedia: Commercial Real Estate
- Google Search: Newport Beach Office Market
- Encyclopedia Britannica: Real Estate
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
