Dollinger Properties lists Brea office at 20% discount to last buy

Dollinger Properties is prepared to sell a 146,000-square-foot office building in Brea for less than it paid for the property in 2019. 

The Redwood City-based firm has put 1800 East Imperial Highway up for sale with an asking price of about $27 million, according to a LoopNet listing. A Newmark team led by Kevin Shannon is marketing the property, named Fairway Center I. 

The listing marks the second time Dollinger has tried to sell the property in the last two years. In July 2022, the firm listed the property for $35 million, according to reports.

Dollinger bought the building for $33.5 million in 2019, records filed with Orange County show, or about $230 per square foot.

If the office building sells for $27 million, the deal would come out to about $185 a square foot. The sale would represent about a 20 percent discount from Dollinger’s purchase price five years ago. 

The owner is offering assemble, non-recourse debt — about $23 million, set to mature in May 2029. The loan has a fixed interest rate of 4.66 percent, lower than the secured financing overnight rate during the last year. 

Newmark is presenting the listing as an opportunity for a tenant to buy its own office space, given the property is currently vacant. 

The property is advertised for lease at $28.20 per square foot a year. To lease the entire building at that price, a tenant would pay about $4.1 million annually. Leasing the building for 10 years would cost a tenant $40 million, significantly higher than the asking price.

When Dollinger bought the building, the property was nearly 90 percent occupied, according to CoStar.

Last year, Dollinger paid $54 million to buy the open-air mall Plaza at Golden Valley in Santa Clarita.

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