Location: 1272-1274 Center Court Avenue in Covina, CA
Total Bldg SF: 19,300 SF
Sale Price: $4,028,000
Quest Capital Partners, Inc. is pleased to announce the recent disposition Royal Oaks Office Suites, a 19,300 sf office building located at 1272-1274 Center Court Avenue in Covina, CA. The property sold for $4,028,000 and was represented by Jamie Harrison and Chris Larimore of Lee & Associates.
Located in the Village Oaks Business Park sub-market of Covina, the Spanish style property was well located with easy access to the I-10, 57, & 605 freeways. Quest purchased the property in February 2020 just before COVID and invested approximately $750,000 in cosmetic and structural upgrades to the asset from 2020-22.
Demand for small tenant office space in the market has been slowing of late and Quest has been strategically re-allocating its capital out of office assets and into value-add multifamily assets in the last year. In 2022 Quest owned 3 office buildings in the market and sold a 110,000 sf West Covina office building (Atrium on the 10) in February 2023. After the sale of Royal Oaks Office Suites and Atrium on the 10, the remaining asset is Hollenbeck Office Suites in West Covina. Hollenbeck is listed for sale with Lee & Associates for $6.5 million.
Deal crystallization has yet to be finalized, however we estimate net investor returns to be in excess of 16% IRR on a 3+ year hold.
“Royal Oaks Office Suites was purchased opportunistically in February 2020 just before the start of COVID. In spite of COVID and the post COVID office leasing hangover, we successfully executed our business plan of renovating and leasing up the property. An exit at this price in a recessionary commercial office market is a huge win and a testament to our vision and the skill of the Lee & Associates brokerage team.”
— Ken Leon, Principal of Quest Capital Partners
Quest Capital is a boutique real estate investment firm focused on value-add investment property throughout the western region of the US. Visit quest-capital.com for more information on or email us at investments@quest-capital.com.
