Orange County’s medical device scene is heating up. MicroVention Terumo, a significant player in the fight against strokes, has expanded its Aliso Viejo footprint by scooping up the neighboring office tower at 45 Enterprise, a 250,000-square-foot property. The $44.25 million acquisition ($177 per square foot, according to public records), at a substantial discount from the original asking price of $80.1 million, signals both a strategic opportunity for MicroVention and echoes shifts in the post-pandemic office market.
MicroVention has been riding a wave of demand for its innovative stroke treatment catheters. These specialized tools are favored by physicians for their ability to navigate the intricacies of the brain’s circulatory system. With over 100 open positions, the company is looking to add to its 1,250-person workforce in California.
The nine-story building at 45 Enterprise will be gradually occupied over the next few years, with a vision to split operations between the two adjacent Summit Office Campus properties, according to a report in the Orange County Business Journal. 45 Enterprise will evolve into the company’s corporate heart, housing finance, marketing, and legal teams. 35 Enterprise, their current headquarters, will transform into a dedicated hub for manufacturing and cutting-edge research and development.
A quirky note in the transaction is the iconic whale statue gracing 45 Enterprise, a tribute to the former tenant, Pacific Life Insurance. California law protects such significant art pieces, and the whale will remain as a landmark, the report stated.
Pacific Life put the property on the market last summer, according to previous reporting by The Registry. Newmark, which had the listing, was looking for a price of $80.1 million, or $325 per square foot.
The unique circumstance of this asset was that it offered office spaces exceeding 100,000 square feet, which is relatively scarce in Orange County.
Pacific Life’s exit from 45 Enterprise after going fully remote was cited as one of the reasons that the company was looking to offload this property. However, the insurance company will retain a strong OC presence with its headquarters at 700 Newport Center Drive.
Orange County’s office market shows signs of stabilizing post-pandemic, with strong performance expected to continue, according to a recent, first quarter of 2024 Orange County office market report by Kidder Mathews. While leasing activity has decreased, leading to lower net absorption, vacancies remain unchanged compared to the previous quarter. Limited new construction helps maintain market balance despite lingering economic instability. Compared to surrounding areas, Orange County’s office market is performing well. Hybrid work arrangements will likely continue to influence office space needs in the coming year.
The county’s economy is projected for moderate growth at 2.5 percent in 2024, driven by healthcare, technology, and financial services. These sectors, along with tech hubs, are increasing the demand for office space, especially within medical and research facilities, the report added. Accounting and consulting are expected to remain major sources of hiring.
