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BIRTCHER ANDERSON REALTY, LLC ACQUIRES $58 MILLION, THREE-BUILDING SANTA ANA CIVIC CENTER OFFICE PORTFOLIO
Company’s investment in Downtown Santa Ana marks shared vision and commitment to area’s urban revitalization as well as return to real estate roots that began in 1939
SANTA ANA, Calif., August 16, 2004 – Birtcher Anderson Realty, LLC, a Laguna Niguel, Calif.-based commercial real estate investment entity formed within the Birtcher Real Estate Group of companies, has acquired a three-building, Class-A office portfolio totaling 378,698 square feet for $58 million. Located in the Civic Center area of downtown Santa Ana, the Santa Ana Civic Center Portfolio was sold by Caribou Industries, a Santa Ana-based development and property management firm.
While Birtcher has acquired, developed and managed properties throughout the United States and off-shore, this acquisition is a significant milestone for the company, as it had its start in Santa Ana in 1939. As the company grew, it became one of the region’s major industrial developers from the 1950s through the 1970s, adding expertise in high profile office and tech projects in the 1980s and 1990s.
“Our acquisition and infusion of capital into the Santa Ana Civic Center is significant as we join the rebirth of one of Orange County’s most prominent economic markets,” said Arthur Birtcher, chairman of Birtcher Anderson Realty, LLC. “As an investor, we are thrilled to see the revitalization that has been happening in Santa Ana over the past few years. We plan to have a long-term involvement in, and commitment to Santa Ana as it re-establishes itself as Orange County’s urban core, one that is rich in history, creativity and character.”
Gil Marrero, Al Pekarcik, Rob Mitchell and Dan Vittone of the Irvine-Calif. office of Voit Commercial Brokerage represented both the buyer and the seller in the transaction. The financial team included the lender, RBS Greenwich Capital, the equity partner and BayNorth Capital (formerly Charlesbank). Knightsbridge Realty Capital arranged the debt and equity on Birtcher Anderson Realty’s behalf.
The buildings in the portfolio include:
- Park Tower , 200 West Santa Ana Blvd. – a 145,863-square-foot, 10-story office building with ground floor retail located across the street from the Old Orange County Courthouse. The building is 95 percent leased to several law firms, the County of Orange, Small Business Administration (SBA), as well as several other governmental agencies.
- 801 Civic Center Drive - a 124,489-square-foot, four-story office building. The building is 100 percent leased to the Internal Revenue Service (IRS) and Regional Center Orange County, which provides services and resources to county residents with special needs.
- Transit Tower , 405 West 5 th Street – a 113,200-square-foot, seven-story office building. The building is 97-percent leased to the County of Orange.
The well-located properties are bordered by major connector streets including 17 th street to the North, Bristol Street to the West, Santa Ana Blvd. to the South and Main Street to the East and are close the I-5 Freeway.
“The buildings we have acquired have strong, state, federal, county and other government related tenants as well as complimentary industries, making this a high profile acquisition for us,” said Bob Anderson, CEO of Birtcher Anderson Realty.
Anderson added that Birtcher Anderson Realty has plans to work in conjunction with the Santa Ana Redevelopment Agency in the immediate future on entitlements to develop a building similar to 801 Civic Center that would be located directly across the street from Superior Court. This new office building would be developed where the 801 Civic Center parking lot now exists. Parking areas would be relocated behind the two buildings.
According to Marrero, 22,000 people come into the Civic Center each day. This area, which consists of approximately one million square feet of high- to mid-rise Class-A office space in about 10 buildings, has a vacancy rate of just three percent. The City’s Midtown section, which surrounds the Civic Center, consists of approximately 1.5 million square feet and is also three percent vacant.
Birtcher’s presence in the market has been well received by city officials. “The principals at Birtcher Anderson are seasoned and experienced real estate experts. Their presence in Santa Ana is not accidental. They understand the demographics and market trends that point to a bright future for the city,” said Alexander ( Sandy) Nalle, a member with the Planning Commission for Santa Ana, vice president with CB Richard Ellis and lifetime resident in the City of Santa Ana.
Birtcher Family of Company’s Historic Ties to Santa Ana
Birtcher’s experience in Santa Ana dates back to 1912 when Arthur Birtcher’s grandfather, Justus Birtcher, moved to Santa Ana from Philadelphia. It was there that he established himself as a custom homebuilder in Santa Ana and other parts of Orange County (he was one of the largest builders in the area, developing an average of 2.5 homes per year).
Justus’ son, Fayette (Arthur Birtcher’s father), graduated from Santa Ana High School in 1927. Fayette formed Birtcher Real Estate in 1939 and by the end of World War II Fayette was recognized as one of Southern California’s leading contractor-developers and built a number of Orange County’s first post-war residential tracts. During this time, he was the forerunner in the revolutionary concept of tilt-up construction, broadening his interests to include commercial development.
Below are some examples of Birtcher’s Santa Ana projects:
- 1955 – one of their first tilt-up concrete industrial endeavors was the development of a 10-acre development on Dyer Road for the US Polymeric Corp.
- 1960 – The company spearheaded a master planned, 45-acre, industrial community on Grand and McFadden in Santa Ana.
- 1986 – Developed Xerox Towers – a two building development totaling approximately 500,000 square feet
- 1984 – Orange County Tech Center, an office and industrial tech project totaling approximately 420,000 square feet was developed off Dyer Road (across the street from the 1960 industrial development)
- 2000 - Redevelopment and sale of Brookhollow Office Park – 24 buildings for $41 million
About Birtcher Anderson Realty, LLC
Birtcher Anderson Realty is a commercial real estate investment entity founded in March 2004 by industry veterans Arthur Birtcher and Robert Anderson within the Birtcher Real Estate Group Family of Companies in which they collectively have 50 years of successful management experience.
Birtcher Anderson Realty was formed in response to a real estate market influenced by large amounts of real estate capital requiring the expertise and strength of long-standing organizations with financially committed and time-tested principals . Birtcher and Anderson have employed their strong relationships in the real estate brokerage community in order to identify acquisition targets, and build upon a solid base of both private and institutional financial partners.
About the Birtcher Real Estate Group Family of Companies
Since its inception in 1939 as a family enterprise specializing in real estate, development, acquisition, investment and property management, the Birtcher Family of Companies has grown to preeminence as one of the leading real estate firms in the Western United States. Headquartered in Laguna Niguel, Orange County, California, the Birtcher Family of Companies has constructed and developed more than 200 commercial and industrial properties comprising more than 50 million square feet. Birtcher has also acquired in excess of $2 billion of real estate through public and private vehicles and on an advisory basis.
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REAL ESTATE INDUSTRY VETERANS ANNOUNCE FORMATION OF NEW REAL ESTATE INVESTMENT COMPANY, BIRTCHER ANDERSON REALTY, LLC
Company Plans to Invest More Than $250 Million In 12 Months
LAGUNA NIGUEL, Calif., April 2, 2004 – After several months of acquiring more than $70 million in properties, industry veterans and leaders in Southern California’s real estate industry, Arthur Birtcher and Bob Anderson have announced the formation of Birtcher Anderson Realty, LLC, a new investment entity formed within the Birtcher Real Estate Group of companies that will focus solely on commercial real estate investment.
Since 1999, Anderson and Birtcher have been conducting their real estate investment activities in concert with Brandon Birtcher through their service company Birtcher Anderson Properties, Inc., another affiliate of the Birtcher Real Estate Group, which was established in 1939. Over the past four years, Birtcher Anderson Properties’ acquisition programs greatly accelerated, producing more than $600 million in property transactions. As a result of this success, Birtcher Anderson Realty has been created as a new investment platform to unbundle the investment activity, including the transaction staff formerly employed by Birtcher Anderson Properties.
Going forward, Birtcher Anderson Properties will continue to focus primarily on its heritage, namely property management, asset management and leasing services, including providing those services for the properties acquired by Birtcher Anderson Realty, and will have limited on-going investment activity including Birtcher Business Center-Vancouver, a land development venture in Vancouver, WA and the recently announced development of South Coast Home Furnishings Centre in Costa Mesa, CA. It is planned as one of Southern California’s largest and most comprehensive home design and furnishing centers.
The founders of Birtcher Anderson Realty are actively seeking to acquire $250 million of office, industrial and retail properties over the next 12 months focusing on Southern California; Phoenix, Arizona; and Las Vegas, Nevada.
"These markets are fundamentally sound for mid- to long-term real estate investment thanks to population increases and job creation fueling strong real estate demand," said Bob Anderson. Anderson added Birtcher Anderson Properties currently has management offices in these markets. "This local market knowledge and expertise is necessary for identifying promising acquisition targets and provides the ability to operate the properties in accordance with their owners’ investment strategies."
Over the last 10 months, Birtcher Anderson Realty has acquired the following properties:
- Santa Ana Civic Center Portfolio
- 555 Anton – One, 12-story, Class-A office building in Costa Mesa totaling 236,183 square feet for $41.3 million
- Atria West – Two, three-story office buildings with four historic French cottages in Los Angeles County totaling 171,047 square feet for $15.5 million
- Canyon Corporate Center – One, four-story office building in Anaheim, Calif. totaling 117,523 square feet for $10.6 million
- Harbor Village – Three-building waterfront retail property in Oceanside, Calif. in northern San Diego County totaling 18,943 square feet for $2.9 million
"Birtcher Anderson Realty’s investment activity has been in response to a unique real estate market influenced by large amounts of real estate capital seeking the expertise and strength of organizations similar to Birtcher Real Estate Group with financially committed and time-tested principals," said Arthur Birtcher.
The company will continue to both employ its strong relationships in the real estate brokerage community to identify acquisition targets, and build upon its solid base of both private and institutional financial partners.
"Art Birtcher and Bob Anderson are both industry veterans and are an excellent team," said Jim Weaver, senior vice president, South Charles Investment Corporation. "They possess a lot of knowledge and integrity, and I know they will do well in their new endeavor. In the projects that we have provided investment capital, they have utilized their real estate expertise to create value and realize better than expected returns."
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BIRTCHER ANDERSON REALTY, LLC PURCHASES 12-STORY HIGH RISE IN COSTA MESA FOR $41.3 MILLION
Class-A Office Tower is Located at 555 Anton
COSTA MESA, Calif., February 1, 2004 – Birtcher Anderson Realty, LLC, a Laguna Niguel, Calif.-based commercial real estate investment entity formed within the Birtcher Real Estate Group of companies, has purchased 555 Anton in Costa Mesa for $41.3 million. The 12-story, Class-A office building, located on the corner of Anton Boulevard and Bristol within the master-planned area of South Coast Metro, was purchased from Colorado-based AGL Investments No. 5 Limited Partnership.
Jeffrey Cole and Rick Putnam, senior vice presidents/principals of Trammell Crow Company represented both sides in the transaction. Wachovia Capital Markets is the buyer’s financial partner. Birtcher Anderson Properties will manage the building.
The high-rise tower built in 1989 and completely renovated in 1996, is on approximately four acres and totals 236,183 rentable square feet. It includes a three-level adjacent parking structure as well as full wrap-around glass windows and granite walls. Two, high-profile signage opportunities are also available. The building is currently 85 percent leased by eight tenants, which include PeopleSoft, Tickets.com, Netifice, Maersk, Bloodgood, BMC Software, Sharp and Meyers Group.
"We are pleased to own this high-profile office building in the heart of Orange County’s business, retail and entertainment hub, said Bob Anderson, principal with ABRA Investments. ’We plan on the continued acquisition of quality investments within the Southern California area.
According to Anderson, Birtcher Anderson Realty, LLC has been very active over the last eight months since the company was formed, acquiring office and retail buildings totaling $28.9 million and 545,000 square feet. These include:
- Atria West - Two, three-story office buildings with 4 historic French cottages in Los Angeles County totaling 171,047 square feet for $15.5 million
- Canyon Corporate Center - Four-story office building in Anaheim, Calif. totaling 117,523 square feet for $10.6 million
- Harbor Village - Three-building waterfront retail property in Oceanside, Calif. in northern San Diego County totaling 18,943 square feet for $2.88 million
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