Avison Young completes $3.575 million sale of an office property for redevelopment within an Opportunity Zone in Costa Mesa, CA

Irvine, CA – Avison Young announced today the $3.575 million sale of a garden-style office property located at 777 to 779 W. 19^th Street in Costa Mesa, CA. The 11,316 square-foot (sf) property is situated on .73 acres of land and is within an Opportunity Zone. The new ownership is looking to redevelop the property as a mixed-use project.

Avison Young’s Peter Hauser, Matt Hauser and Masa Ito in the company’s Irvine, CA office, represented the seller,19^thStreet, LLC, based in Newport Beach. The 1031 exchange buyer was a Newport Beach-based private investor, who was represented by Steven Lambert of Nook Real Estate.

 

“With a prime location in a coastal Orange County Opportunity Zone, our team had significant investor interest in this property with more than 20 offers submitted,” said Peter Hauser. “The buyer plans to operate the office property, while undergoing entitlements for a mixed-use development that would include a small commercial ground floor component and 16 to 24 residential units. The entitlement process for the redevelopment is estimated to take 10 months.”

 

Located at 19th Street and Placentia Avenue in Costa Mesa, the site is within in a dense, infill location that is a short drive to retail, dining, and entertainment amenities, as well as Newport Beach, Pacific Coast Highway, and the 57 freeway.

Peter Hauser noted that the Opportunity Zone designation is helpful in providing federal tax incentives for capital gains tax treatment. Part of the qualifications include substantial renovations to the existing property or a complete demolition to provide a new ground-up development.