News Summary
First Citizens Bank has successfully acquired the Newport Plaza building for $32.7 million in a significant real estate move within Orange County. The deal, finalized on August 8, involved a five-floor structure covering 108,112 square feet, with a price per square foot of $302. This acquisition highlights the growing commercial real estate trends in Orange County’s Airport Area, where leasing activity has surged recently. First Citizens Bank’s purchase hints at potential future operations in the region, driven by the strong commercial environment.
Newport Beach – First Citizens Bank has successfully purchased the Newport Plaza building for $32.7 million, marking a significant real estate acquisition in Orange County. The transaction was finalized on August 8, 2024, and reflects a price of $302 per square foot for the five-floor commercial structure, which spans 108,112 square feet and is situated at 895 Dove St, approximately two miles from John Wayne Airport.
The previous owner of the property was Goldman Sachs Asset Management, a well-known investment management firm based in New York. The sale of Newport Plaza is notable within the backdrop of ongoing commercial real estate activity in Orange County’s Airport Area, which has seen significant leasing trends recently.
First Citizens Bank operates a commercial branch nearby at 1201 Dove St, Suite 150, providing a foundation for the bank’s potential future operations in the area. While it remains unclear whether this acquisition signifies an intention to expand its banking operations in Orange County, the move could also be viewed as a strategic investment in a region boasting robust commercial activity.
As of June 30, 2024, First Citizens Bank reported approximately $1.2 billion in deposits, supporting about 60 employees within Orange County. The bank has been active in financing ventures in the region, including a recent investment in a medical office portfolio valued at $18.6 million.
Having been established in 1898 as the Bank of Smithfield, First Citizens Bank has grown significantly over the years, officially expanding its footprint outside of North Carolina in 1994. Today, it ranks among the 20 largest financial institutions in the United States, with assets totaling $200 billion and a market capitalization of $25 billion (Nasdaq: FCNCA).
In addition to the Newport Plaza acquisition, Orange County’s Airport Area has recorded a notable uptick in commercial leasing activity. In the last quarter alone, 1.8 million square feet of office space was leased, marking a 42% increase from the previous quarter. Key transactions in the area included a 62,977-square-foot lease by UC Irvine and a 60,714-square-foot lease renewal by Zillow.
The Airport Area currently boasts the largest inventory of office space in Orange County, totaling nearly 45.7 million square feet. This thriving business environment has made it a focal point for corporate activities, attracting substantial interest from companies and investors alike.
Furthermore, Citizens Financial Group has been actively recruiting teams to enhance its private wealth division, including a team led by Kris Reddaway that previously managed $900 million. This aligns with the broader trend of financial institutions consolidating their presence in key areas to leverage growth opportunities.
Overall, the acquisition of the Newport Plaza building by First Citizens Bank underscores the ongoing vibrancy of the commercial real estate market in Orange County’s Airport Area and sets the stage for further developments in the region.
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Additional Resources
- Orange County Business Journal: First Citizens Bank Buys NB Office for $32.7M
- AdvisorHub: Citizens Lands Merrill Private Wealth Team Managing $900 Million in California
- Providence Business News: Citizens Continues West Coast Private Bank Expansion into Southern California
- Google Search: First Citizens Bank
- Barron’s: Sageview Acquires Retirement Consultancy, Wealth Manager Cap Strat
- Wikipedia: Commercial 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.
