Murray Co., a mechanical contractor based in Rancho Dominguez, recently made a significant purchase in the real estate market. The company acquired a 104,734-square-foot office building in Cypress for $19 million. This move demonstrates Murray Co.'s commitment to expanding its operations and services.
Expanding Office Space
The newly acquired building, located at 5995 Plaza Drive, will serve as the main office for Murray Co. With plans to accommodate over 250 employees, the spacious five-floor office space provides ample room for growth and productivity. DAUM Commercial Real Estate Services, which facilitated the transaction, also shared that the mechanical contractor has exciting plans for improving the campus.
Orange County's Office Market
The current state of the office market in Orange County presents challenges due to the post-pandemic decline in tenant interest, sales volume, lease rates, and absorption. However, DAUM believes that the discounted price offered for the office building presented a unique opportunity for Murray Co. to secure a new location. The move to the new office will support over 250 employees and contribute to the growth of the local economy.
There is still a significant number of vacant office spaces in Orange County, with an office vacancy rate of 12.4% in the fourth quarter of 2023, according to a report by Kidder Mathews. Despite these challenges, the report suggests that as the economy slowly grows, there may be an increase in the demand for office space as businesses expand and generate more jobs.
County Leases Building in Santa Ana
In other real estate news, the county government has recently leased a building in Santa Ana for offices and research and development (R&D) purposes. Drawbridge Realty, the property owner, confirmed the long-term lease for approximately 70,000 square feet of space at 1700 E. St. Andrew Place. This conveniently located building, situated just one block from the 55 freeway, will undergo interior improvements to cater to the county's specific requirements.
Successful Sale of Industrial Park
Ares Management Corp. and CapRock Partners have recently completed the sale of Spanish Ridge Industrial Park near Las Vegas. The newly constructed industrial park comprises three buildings, both single- and multi-tenant, totaling 230,899 square feet. At the time of the sale, Spanish Ridge was fully leased to five tenants. The terms of the sale were not disclosed, but this transaction marks another successful deal in the ever-evolving real estate sector.
Habitat for Humanity's CEO Appointment and Fundraising Success
Habitat for Humanity of Orange County recently held its annual breakfast and awards ceremony, raising an impressive $404,000. These funds will be allocated towards constructing affordable homes for families in need within Orange County. The event also served as an opportunity to introduce Michael Valentine, the newly appointed president and chief executive of Habitat for Humanity. With a goal of building 100 homes over the next three years, Habitat for Humanity strives to transform the lives of many through affordable homeownership.
People on the Move
In relevant personnel changes, Jesse McDonald has taken on the role of senior investment director of real estate credit at Kairos Investment Management Co. Based in Irvine, McDonald previously held the position of managing director of commercial real estate originations at CIBC. Additionally, Hyosung "HK" Kang has become the new investment director at Kairos Investment Management Co., bringing his expertise as a former senior director of acquisitions at Benedict Canyon Equities. The Kairos team, which has transacted over $4.2 billion in real estate since its inception in 2005, continues to grow and excel in the industry.
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Note: All images are provided courtesy of the respective property owners.