234,000 SQFT Mission Ridge Office Complex Sold for $32MM to Barker Pacific Group Affiliate

Cornerstone Real Estate Advisers has sold the Mission Ridge office complex in Mission Viejo. The property, which consists of twin four-story buildings at 27201 and 27101 Puerta Real with a total of 233,531 square feet of rentable space, was purchased by an entity associated with Barker Pacific Group. The sale closed on March 31st for $32 million.

The property went on the market in September 2024, when Cornerstone Real Estate Advisers listed it for sale, seeking the best offer. At the time of listing, the complex was 52 percent occupied, with approximately 111,258 square feet (47 percent) available for lease. CBRE’s team, led by Anthony Delorenzo, Sammy Cemo, and Bryan Johnson, marketed the property.

At $32 million for 233,531 square feet, the sale price works out to approximately $137 per square foot, which reflects current market conditions in Orange County’s office sector. This price point indicates investor interest in well-positioned assets with the potential for increased occupancy or repositioning opportunities.

Cornerstone Real Estate Advisers had owned the buildings since 2013 and completed an extensive renovation in 2021, updating the exterior, lobbies, doors, restrooms, fitness facility, locker rooms, showers, and exterior signs. The renovation also added a new conference center and tenant lounge, enhancing the property’s appeal to current and prospective tenants.

The Class A office complex sits on 10.28 acres along Interstate 5 with high visibility (approximately 310,956 vehicles pass by daily) and includes 929 parking spaces with electric vehicle charging stations. The property features fiber optic cable, conduit interconnectivity between buildings, outdoor seating areas, a putting green, security services, and on-site management.

Prior to the sale, the twin office buildings were occupied by a diverse mix of tenants, including a coworking space, a bank, an investment company, a finance company, a real estate group, and Marie Callender’s Corporate Office. The remaining available space presents an opportunity for the new ownership to attract additional tenants or potentially reposition portions of the property.

The property’s location on Interstate 5 connects it to Interstate 405, State Route 133, State Route 74, and State Route 73. It is positioned roughly equidistant from Los Angeles International Airport and San Diego International Airport, making it accessible for companies with regional or national operations.

When marketed, CBRE suggested the property could be suitable for conversion into a medical facility due to its proximity to Providence Mission Hospital Mission Viejo, which is just over a mile away. This potential alternative use adds flexibility to the property’s long-term value proposition.

Orange County’s office market was showing signs of recovery by the end of 2024, following a year of slow activity caused by a drop in leases, according to market a market report by Kidder Mathews. So far this year, nearly 510,000 square feet have been net absorbed, surpassing pre-pandemic levels. The market has a direct vacancy rate of 12 percent with an average asking price of $2.82 per square foot on a full-service basis. Modern, well-appointed, and creatively inspiring office spaces are in high demand among tenants, with landlords improving the rental experience by offering rent reductions, free rent periods, and interior renovations.

Industry observers will likely be watching to see whether Barker Pacific Group implements a traditional office leasing strategy or pursues alternative uses for portions of the complex, such as medical offices or potential mixed-use elements, that might respond to evolving market demands in Mission Viejo and the broader South Orange County area.