The City of Irvine has made a real estate acquisition by purchasing a 57,300-square-foot office building for $13 million. The newly acquired property, located at 17101 Armstrong Avenue, will serve as administrative offices for the city’s agencies. The transaction, equating to $227 per square foot, was brokered by CBRE and represents a strategic investment in the city’s infrastructure.
The building, originally built in 1982, is a Class B property situated on 2.5 acres in the Irvine Business Complex. As part of the agreement, the seller, RGP Property, will relocate from the two-story headquarters. The new location of RGP’s headquarters has not been disclosed.
Anthony DeLorenzo of CBRE described the transaction as mutually beneficial. “This was a great result for both parties, which provided for the seller to downsize and reduce their real estate footprint, and for the buyer the ability to occupy a strategically located asset within the Irvine Business Complex for years to come,” he told the Orange County Register.
The purchase was approved by the city in March, and the building is slated for extensive renovations to suit its new role. Planned upgrades include improvements to the roof, mechanical systems, cabling, and the installation of enhanced security measures, the report added. These renovations are necessary to meet the city’s standards for accessibility and operational efficiency, although the total cost for the upgrades has not been disclosed.
While the renovation work is underway, the City of Irvine will lease two buildings at the University Research Park to serve as temporary office space. This interim arrangement comes with a $1.2 million lease price, which will be partially offset by a $500,000 credit negotiated as part of the Armstrong Avenue purchase, OC Register reported.
This acquisition reflects a broader trend among local governments capitalizing on a soft office market driven by high vacancies, rising interest rates, and declining property values. Just last month, Los Angeles County acquired the 1.4 million-square-foot Gas Company Tower for $215 million, or $154 per square foot, from Brookfield Properties. Earlier this year, UCLA purchased the former Westside Pavilion Mall for $700 million, with plans to transform it into a cutting-edge research facility.
Irvine’s investment in its future administrative headquarters highlights the city’s strategic focus on securing long-term assets while modernizing its infrastructure to meet evolving needs.
