N.J. Firm Acquires Lake Forest Property

An affiliate of New Jersey-based commercial real estate investor and developer Gale & Wentworth has purchased its first California property, buying 33 acres of land in Lake Forest where it will build a 570,000-square-foot office park called Pacific Spectrum. MSGW Real Estate Fund II, headed by Morgan Stanley and Gale & Wentworth, purchased the property from PacTel Systems for $10.5 million. Gale & Wentworth’s new Irvine office will develop and manage the project, which is expected to break ground in March, said Patrick Murphy of the firm. The firm is also negotiating to purchase another $16 million worth of office and light-industrial properties, Murphy said. The sale underscores the continued strength of Orange County’s industrial market, said Norm Nowell, president of Makena Properties, the park’s manager. In just 2 1/2 years, Makena has sold all but one tract in the 230-acre park and 40 companies have leased space or bought property. The park’s last remaining piece is in escrow, Nowell said.