Xerox Corp. has acquired a 50% interest in Birtcher's $200-million high-rise office park being developed in Santa Ana in a cashless transaction in which the giant business machine company agreed to co-sign the construction loan and lease at least 125,000 square feet in the complex for 10 years.
Landing a long-term major tenant such as Xerox will help Birtcher, which is based in Laguna Niguel, lure other tenants to its office development, building industry specialists say. In the competitive commercial construction industry in Orange County, office vacancy rates are fast approaching 20%.
Officials of Xerox Realty Corp., the Xerox subsidiary that arranged the deal, said Wednesday in a press conference called by Birtcher that the company will consolidate its Western administrative offices at the business park, to be called Xerox Centre.
Brandy Birtcher, a partner in the family-run Birtcher development firm that will build the project on 4th Street at the intersection of the Costa Mesa and Santa Ana freeways, said at a press conference Wednesday that the 1.2-million-square-foot office complex will be developed over seven years on 10 acres Birtcher bought from Allstate Insurance Co. for $12.4 million in December.