Attractive Going-In Yield Attracts Kingsbarn to Palm Terrace

Palm Terrace, a 155,795-square-foot class-A office campus consisting of three two-story office buildings, recently sold for $40.45 million in Lake Forest. The buyer was Kingsbarn Real Estate Capital.

Newmark’s Kevin Shannon, Paul Jones and Brandon White represented the seller, Bailard Real Estate Fund. The buyer was self-represented. 

“Palm Terrace is a stabilized office investment with a strong, diversified rent roll that offers an attractive going-in yield,” said Jones. “This was Kingsbarn’s second office purchase in South Orange County and aligns with their plan to capitalize on the flight to low-rise product with an attractive weighted average lease term and strong cash flow.” 

The property, located at 25521, 25531 and 25541 Commercentre Dr., is 97 percent leased to a diverse tenant mix including Del Taco, PGM Holdings, Hometown Equity, Citadel Servicing and Anyone Home. Newmark’s Jay Nugent and Greg Puccinelli are the leasing agents for the property. 

Located in South County, the property is near the I-5 Freeway and CA-241 highway as well as amenities at the Irvine Spectrum Entertainment Center, Five Lagunas and Foothill Ranch Towne Centre.