Investment Overview

Marcus & Millichap is excited to offer for sale the Cobblestone Professional Office Building, a prime investment located in the vibrant Orange County. This property boasts excellent connectivity with easy access to major highways, including the 91, 55, and 57 Freeways, making commuting a breeze for both employees and clients. The Cobblestone Professional Office Building encompasses approximately 23,500 gross square feet and sits on a generous 1.17-acre lot. Constructed in 1979, this two-story building features ground-floor units with retail visibility, making it a standout property in the area. Owned by the same family for over 27 years, this is a rare opportunity for investors to acquire a highly desirable asset situated just off East Orangethorpe Avenue, surrounded by numerous major retailers. This property is currently the only office building on the market in Placentia and offers the lowest price per square foot within a five-mile radius. The multi-tenant office building is occupied by below-market month-to-month tenants, providing a unique opportunity to increase value through renovations and market adjustments. Currently, the average monthly rent for office space is just $0.78 per square foot, while comparable units lease for around $2.00 per square foot. The proforma estimates suggest a potential rental rate of $1.85 per square foot on a modified gross basis, yielding an attractive capitalization rate of 7.30% on a stabilized basis. Additionally, there’s a compelling opportunity for owner-users to purchase the property and occupy at least 51% of the space, allowing them to benefit from the 10% down payment SBA program. This would effectively bring the mortgage payment to approximately $1.37 per square foot on a NNN basis, while still providing the same tax advantages of interest write-offs and asset depreciation enjoyed by investors.