Seal Seaside, CA — Harbor Associates, LLC (“Harbor”), a worth add and opportunistic purchaser and proprietor within the workplace market, accomplished the lease up of the Bungalows Del Mar Workplace (https://www.thebungalowsdelmar.com/) regardless of the pandemic and work at home traits and now the recession that has slowed conventional workplace leasing. This Del Mar workplace house created by Harbor has been so profitable {that a} uncommon vacant workplace house totaling 2,086 sq. toes has lately turn out to be obtainable for the primary time in almost 5 years.
The Bungalows Del Mar Workplace is a 39,537-square-foot development setting low-rise workplace constructing within the extremely fascinating coastal San Diego submarket of Del Mar. Harbor vacated the constructing and accomplished a significant $4 million development setting and gorgeous renovation.
Harbor, in three way partnership with the Bascom Group, LLC, acquired the Del Mar workplace property situated at 2010 Jimmy Durante Boulevard with the plan of repositioning the asset to enchantment to a broader tenant base. Enhancements included a whole exterior redesign, new inventive workplace spec suites with uncovered vaulted ceilings, skylights, and operable home windows. Joon Choi, Harbor principal, said “To leverage the building’s location less than one mile from the beach and the Village of Del Mar, Harbor upgraded the expansive outdoor space and patio areas to create ‘outdoor meeting rooms’ and installed a locker room with showers, and electric car chargers. It’s been an easy sales pitch for our leasing team of Joe Anderson and Brooks Campbell at Cushman & Wakefield. We just don’t have any vacant space to lease to accommodate the strong interest.”
The constructing’s location, design, and performance in coastal Del Mar contributed to the leasing success throughout the pandemic and work at home development, in line with Harbor Principal Wealthy McEvoy. “While most other office owners have suffered from declining office demand and work from home trends, Bungalows Del Mar office has enjoyed significant leasing interest and demand with almost every tenant renewing their lease for more term. We have had to tell every interested company that ‘sorry, we have nothing available’. Del Mar office tenants have been drawn to our exterior entries rather than enclosed hallways, restrooms accessed from outdoor common space, excellent circulation with operable windows throughout, expansive outdoor patio and meeting space, independent HVAC systems, and social distancing design plan,” stated McEvoy. Image and movies of the sunning renovation may be seen right here: (https://www.thebungalowsdelmar.com/gallery.html)
Regardless of workplace buildings being out of favor amongst institutional traders, Harbor continues to hunt out choose and contrarian alternatives on this distressed sector to create worth. “We’re pursuing acquisition strategies for similar well located and differentiated office projects that will be in demand as workers continue to return to the office. We have a robust pipeline of activity and look forward to adding to our Southern California portfolio,” added Harbor Principal Justin Loiacono.
Harbor Associates and F&F Capital Group lately bought close by Highlands Company Middle, a Class A Del Mar workplace campus in San Diego’s Del Mar Heights, for an undisclosed value. Positioned at 12730-12780 Excessive Bluff Drive in San Diego, Highlands Company Middle provides 211,000 sq. toes of workplace house unfold throughout 5 buildings. The lately renovated Del Mar workplace campus options new foyer finishes, a brand new convention heart, health amenities, tenant lounge and an outside pavilion, in addition to electrical automobile charging stations and personal balconies on a number of of the upper-floor tenant suites.
Paul Miszkowicz said “Harbor has been one of the most active buyers of distressed office in Southern California this past year despite the lack of debt financing and institutional interest. The office acquisitions we have made have all been at significant discounts to replacement cost and mostly double-digit cap rates – and were all newer Class “A” properties in premier “A” areas. We’re getting plenty of calls from non-public fairness funds and household workplaces which are considering capitalizing on this distressed and contrarian alternative with us within the workplace sector.”
About Harbor: Harbor Associates, LLC (www.harborassociates.com) is a value-add working platform targeted on buying and repositioning under-performing industrial actual property belongings all through Southern California. Harbor has been concerned within the renovation, repositioning and improvement of 40 industrial tasks totaling over 4.0 million sq. toes with a portfolio worth in extra of $1.0B. The corporate is a three way partnership with The Bascom Group, LLC.
About Bascom: Bascom is a non-public fairness agency specializing in value-added multifamily, industrial, and non-performing loans and actual property associated investments and working corporations. Bascom sources value-added and distressed properties together with many by foreclosures, chapter, or brief gross sales and repositions them by including in depth capital enhancements, bettering income, and decreasing bills by realizing operational efficiencies by implementation of institutional-quality property administration. Bascom, based by principals Derek Chen, Jerry Fink, and David Kim, is likely one of the most lively and seasoned patrons and operators of residence communities within the U.S. Since 1996, Bascom has accomplished over $22.0 billion in multifamily value-added transactions encompassing 358 multifamily properties and over 105,000 models. Bascom’s industrial transaction quantity is $5.8 billion in whole and quantities to over 23.4 million sq. toes. Bascom has ranked among the many prime 50 multifamily house owners within the U.S. Bascom’s subsidiaries and joint ventures embrace the Bascom Worth Added Condo Traders, Shubin Nadal Associates, Spirit Bascom Ventures, REDA Bascom Ventures, Bascom Northwest Ventures, Bascom Arizona Ventures, Harbor Associates, Village Companions Ventures, and Realm Group. Bascom’s subsidiaries additionally embrace Premier Workspaces, one of many largest privately held government suite, coworking and shared workspace corporations within the U.S. For extra info, please go to www.bascomgroup.com.
