Harbor Closes Off-Market Three Building Orange County Portfolio
LONG BEACH, Calif., Oct. 18, 2016 /PRNewswire/ -- Harbor Associates, LLC ("Harbor") has acquired Tustin Commons, a 210,875 square foot, three building, office and flex portfolio in a joint venture with Stockbridge Capital Group ("Stockbridge"). Harbor sourced the asset in an off-market transaction by capitalizing on its local knowledge that the previous tenant was vacating the entire campus in Q2 2016 and was able to secure a 20,000 square foot, multi-billion-dollar tenant in tow during escrow. Harbor also owns the 40,000 square foot Bespoke Tustin property across the street from Tustin Commons. The portfolio marks the fifth value-add office acquisition for Harbor in the last fourteen months and expands the firm's existing footprint in Orange County. John Collins and Gary McArdell of Lee & Associates Newport Beach represented the buyer and seller in the transaction. Greg Brown, John Chun and Jamie Kline of HFF arranged the financing for the project. Pine River Capital Management was the external manager for the lender.
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Harbor is planning to reposition and lease-up the asset through a comprehensive rebranding and renovation program that includes transforming the exterior of the buildings, upgrading lobbies and restrooms, and creating new indoor and outdoor amenity spaces for tenants to collaborate, dine and recreate. As part of the portfolio repositioning the project will be rebranded as 'Create Tustin' - a nod to the history of innovation, design, and manufacturing from the former occupants of the campus.
Create Tustin benefits from its immediate access to Interstates 5 and the 261 toll road. The property is centrally located near amenities and mass transit including the 1.6 million square foot 'Tustin Marketplace' outdoor mall, the 1.0 million square foot 'District' lifestyle shopping center and the Tustin Amtrak/Metrolink station. The three building campus located in Tustin, CA is comprised of two office buildings located at 14101 Myford Rd. and 2642 Michelle Dr. and a flex building located at 14192 Franklin Ave.
The buy for Harbor is the firm's fifth recent acquisition, coming on the heels of Harbor's creative office purchase of 'Bespoke Tustin' in Tustin, California, '5280 Carroll Canyon' in San Diego, California, '71 At The Park' in Lake Forest and 'Bespoke Irvine' in Irvine, California.
Paul Miszkowicz, Principal for Harbor, comments, "Create Tustin represents our fifth value-add office acquisition in the last fourteen months and our fourth in Orange County. We intend on building on our recent momentum by sourcing new opportunities and pursuing similar strategies in high demand Southern California submarkets in order to meet our acquisition goal of $250M by year end 2017".
Joon Choi, Principal for Harbor, states, "We tapped into our contacts to execute this deal where we are doing repeat business with a credit tenant-in-tow, brokers that we've transacted with, and a relationship lender. The pre-leasing activity we are experiencing in this pocket of Tustin is very strong with several publicly traded companies looking for the creative workplaces that Harbor is delivering."
Justin Loiacono, Principal for Harbor, adds, "We're continuing to find interesting opportunities in Southern California to invest in the value-add space through our deep network of brokerage relationships and off-market channels. We have a robust pipeline of activity behind this transaction."
About Harbor: Harbor Associates, LLC (www.harborassociates.com) is a value add operating platform focused on acquiring and repositioning under-performing commercial real estate assets throughout Southern California. The three Principals of Harbor have over 25 years of experience in Southern California and have closed over $1.7B in acquisitions and asset managed over $2.5B in assets totaling over 3M SF of office. The company is a joint venture with The Bascom Group, LLC.
About Bascom: The Bascom Group, LLC is a private equity firm specializing in value-added multifamily, commercial, non-performing loans, and real estate related investments and operating companies. Bascom sources value-added and distressed properties including many through foreclosure, bankruptcy, or short sales and repositions them by adding extensive capital improvements, increasing revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom, founded by principals Jerry Fink, David Kim, and Derek Chen, is one of the most active and seasoned buyers and operators of apartment communities in the U.S. Bascom has completed over $12 billion in multifamily and commercial value-added transactions since 1996 including more than 299 multifamily properties containing over 79,000 units. Bascom has ranked among the top 50 multifamily owners in the U.S. Bascom's subsidiaries and joint ventures include the Southern California Industrial Fund, Rushmore Properties, Bascom Portfolio Advisors, Shubin Nadal Associates, Spirit Bascom Ventures, REDA Bascom Ventures, MHF RM Holdings, Bascom Northwest Ventures, Bascom Arizona Ventures, Harbor Associates, Village Partner Ventures, and the Realm Group. Bascom's subsidiaries also include Premier Business Centers, the largest privately held executive suite company in the U.S. For additional information, please visit www.bascomgroup.com.
About Stockbridge: Stockbridge Capital Group is a fully independent real estate investment management firm headquartered in San Francisco, California with offices in New York, Chicago and Atlanta. The firm's portfolio is comprised of assets across the risk spectrum, spanning all major property types throughout the United States. As of June 30, 2016, the firm's total Assets Under Management was $9.9 billion.
About Pine River: Pine River Capital Management (www.pinerivercapital.com) is a global alternative asset management firm founded in 2002 that invests across multiple sectors, including commercial real estate, on behalf of various entities. Direct commercial real estate investments target first mortgage loans, mezzanine loans, b-notes and preferred equity on commercial real estate.
Contact: Joon Choi
Tel: 562-436-6688
Email: Email
SOURCE Harbor Associates LLC
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