Newport Beach-based chipmaker Conexant Systems plans to sell 25 acres of land next to its headquarters for $23.5 million, after an earlier deal with Santa Ana-based City Ventures fell through.
The new buyer, Uptown Newport LP, is a joint venture between New York-based DRA Advisors and an affiliate of The Shopoff Group, an Irvine-based real estate investment firm. Under the agreement, Conexant will hold a $2.2 million equity investment on the land.
Conexant makes semiconductors used in imaging, audio, embedded modem and video surveillance applications. The company, which reported revenue of $56.3 million in the fourth quarter, plans to use the proceeds from the sale for general corporate purposes, said Scott Mercer, Conexant's chairman and CEO.
"The divestiture of our property in Newport Beach will strengthen our balance sheet and provide us with increased financial liquidity," he said.
The property is located on Jamboree Road and includes two leased buildings. It was originally set to be sold to City Ventures, a residential and mixed-use developer, for $26.1 million. The deal was terminated in March.
The new transaction is slated to close by the end of the year.
O.C. High School of the Arts lands $30 million in financing
New lawsuit filed over O.C. fairgrounds
Surf City's Pierside Pavilion makeover moves forward