Newmark Arranges Sale of 127,753 SF Stonemill Design Center Flex Office Campus in Costa Mesa

Newmark has arranged the sale of Stonemill Design Center, a flex office campus spanning approximately 8.3 acres at 2915 Red Hill Avenue in Costa Mesa, California, the firm announced March 26. The 127,753-square-foot property, comprising seven buildings, was sold by an undisclosed institutional investor to a private investor in a transaction that underscores continued demand for value-add office real estate in Orange County's supply-constrained market.

Transaction Details and Newmark's Role

Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman Paul Jones, and Ken White, Senior Managing Directors Brandon White and Chris Benton, and Managing Director Anthony Muhlstein represented the seller in the transaction. The sale price was not disclosed.

"We are pleased to have facilitated the sale of this rare opportunity, which represents one of the best redevelopment opportunities in Orange County," Jones said in a statement. "Stonemill Design Center's prime location in the Greater Airport Area, strong in-place income and future redevelopment upside made it highly attractive to investors seeking value-add potential in a supply-constrained market."

Property Overview: Flex Office Campus

Stonemill Design Center consists of seven flex office buildings. The property is currently 94% leased to a diverse mix of commercial, industrial, and office tenants. The campus has maintained an average occupancy rate of 92% over the past six years, demonstrating consistent demand in the submarket.

Location and Market Context in Orange County Office Real Estate

The campus is situated in Costa Mesa's Greater Airport Area submarket, adjacent to the SR-73 Freeway and in close proximity to South Coast Plaza. The location provides access to employment centers in Santa Ana, Anaheim, and Irvine — markets that collectively represent more than 113 million square feet of office inventory and approximately 452,000 jobs within a 10-mile radius, according to Newmark.

The property's positioning near both the SR-73 and SR-55 freeways supports access to a broad employee base and offers commute connectivity to key Orange County employment nodes. Newmark characterized the transaction as occurring in a supply-constrained commercial real estate environment, a dynamic the firm cited as a key factor driving investor interest in the asset.

Value-Add Investment Strategy

The transaction reflects a value-add investment strategy, with the buyer acquiring the property for its redevelopment potential alongside its existing income stream. Newmark described the property as representing "one of the best redevelopment opportunities in Orange County," citing the combination of in-place income, future upside, and the submarket's constrained supply environment as factors that attracted investor interest. The flex office format — which accommodates a blend of commercial, industrial, and office uses — positions the campus for potential repositioning or redevelopment scenarios.

About Newmark

Newmark Group, Inc. (Nasdaq: NMRK) is a commercial real estate services firm offering capital markets, leasing, and advisory services. For the twelve months ended December 31, 2025, Newmark generated revenues of nearly $3.3 billion. As of December 31, 2025, the firm and its business partners operated from approximately 175 offices with more than 9,300 professionals across four continents.