The Opportunity
In 1998, MCC acquired Metro Center at
South Coast, a 480,000 square foot, 82% leased, Class A office
project on 40 acres located at the intersection of the 55 and 405
freeways in the John Wayne Airport area of Orange County. MCC
purchased 2 of the 3 existing 12 story buildings on the site and
40 acres of land comprising common areas, parking and adjacent
developable parcels. Metro Center presented an opportunity to
reposition this Class A project as the first high and low-rise
integrated office campus in the Airport submarket. The effort
involved the lease-up of the existing high-rise buildings and the
creation of a new campus design requiring the re-entitlement of
the common areas and vacant land.
In September 2005, MCC purchased the fee in
Metro Center at South Coast from the ground lessor, allowing the
partnership to receive approval from the City of Costa Mesa to
amend the lot lines of the property’s land parcels. The lot line
adjustment was effectuated in order to create a separate parcel
that was ultimately entitled for residential development.
Performance Highlights
Successfully re-master-planned and
re-entitled the entire 40 acre campus adding 780,000 square feet
of new office, retail and hotel entitlements.
Sold vacant land with over 500,000
square feet of office entitlements to Experian Information Systems
for construction of its North American headquarters. The
transaction was the second largest headquarters deal in Orange
County history.
Completed approximately 70,000 square
feet of new retail development and two parking facilities serving
1,000 cars.
Acquired leasehold interested in 555
Anton in May 2005, bringing the entire Metro Center campus under
one ownership.
Won approval from the City of Costa
Mesa for a lot line adjustment of the land parcels at Metro Center
and created a residential parcel that will be developed by MCC and
its partners.
Completed over 880,000 square feet of
leases throughout the ownership period.
Current Status
Metro Center at South Coast was sold
in September of 2005. MCC and its partners retained ownership of
the newly created residential development parcel for future
development.
MCC has successfully converted 200,000
square feet of hotel entitlements into 1,000,000 square feet of
residential entitlements.
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