News Summary
MetLife Investment Management has purchased the Koll Center Newport office campus in Newport Beach for $70 million. The acquisition comes after a major loan default linked to the property. The two-tower campus, totaling 376,781 square feet, faces high vacancy rates, particularly in the West Tower, which has a 60% vacancy. Despite challenges, experts see potential for leasing activity to improve in the area. Previously owned by Hines, this site is situated near John Wayne Airport and has a significant unpaid debt following the transaction.
Newport Beach — San Francisco-based MetLife Investment Management has acquired the two-tower Koll Center Newport office campus for $70 million. This purchase followed the largest reported default on a loan associated with an office property in the airport area in over five years. The acquisition was executed via the assumption of a loan for the property, which is located at the intersection of Jamboree Road and MacArthur Boulevard, less than a mile from John Wayne Airport.
The outstanding loan on the Koll Center Newport was $108 million, indicating that MetLife’s bid was significantly below the amount owed. The previous ownership of the property was held by HG Newport Owner, linked to the Houston-based real estate developer Hines, which had managed the property.
The office campus encompasses 376,781 square feet and includes both the East Tower, which measures 198,856 square feet, and the West Tower, spanning 177,925 square feet. The structures were designed by Stadium Collections LLC. The last known transaction for Collar Center Newport occurred in 2017, when it was sold to New York-based Goldman Sachs Group Inc. for $176.5 million. After the current acquisition, the property was recorded to have an unpaid debt of $108.5 million as per a trustee deed.
Following the property transfer, Agoura Hills-based Beacon Default Management Inc. acted as the trustee. In terms of occupancy, the property faces significant challenges, with the West Tower currently having a vacancy rate of 60% and the East Tower showing 24% vacancy. Despite higher vacancies in the airport area’s office market—reported at 18.7%—industry experts suggest that leasing activity is showing signs of improvement, potentially heralding a more favorable market environment.
The Kaufman family originally developed the property in 1979 through The Koll Co. Before its default, Hyundai Capital America was one of the tenants occupying space within the office campus. The current economic situation in the office real estate market reflects a broader trend in the area near John Wayne Airport, where vacancies have been above average compared to the luxurious Fashion Island sector of Newport Beach.
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HERE Resources
MetLife Investment Management Acquires Koll Center Newport
Additional Resources
- OC Business Journal: MetLife Assumes $108 Million Debt for Newport Beach Towers
- Wikipedia: Newport Beach, California
- OC Business Journal: Newport Beach Office Towers Sell for $70 Million
- Google Search: Office Real Estate Market California
- Encyclopedia Britannica: Newport Beach
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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.
