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5/20/15
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Bixby Land Company has purchased a 53.1k sf building in Aliso Viejo for $11.6 mil, or about $218/sf. The building, located at 26880 Aliso Viejo Pkwy, within Town Center Corporate Park, was acquired from Harsini AVP Holdings LLC.
This is the fifth project Bixby has acquired over the last two years in Orange County, including the firm’s most recent $44.25 mil buy of the Kawasaki headquarters building in Irvine last month.
Bixby looks for investment opportunities that enable them to convert older properties into creative office space uses, which is in greater demand by today’s tenants. This project, built in 2000, requires little exterior work. Instead, Bixby will focus its efforts in the lobby and tenant spaces.
The building was 69% vacant at the time of sale. Bixby will invest new capital into interior building upgrades and tenant finishes to deliver a contemporary work environment that has become synonymous with Bixby projects for the past five years.
“We were attracted to the upside opportunity in this building against the backdrop of strong market fundamentals and the inadequate supply of creative office options to meet demand,” said Aaron Hill, senior vice president of operations for Bixby.
CBRE reports that the South Orange County market had a 6.8 percent vacancy rate at the end of the first quarter of 2015. The Aliso Viejo market reported an even tighter 3.2 percent vacancy rate, with no new office projects under construction.
The seller was represented by Doug Matthews and Gary Allen at Newmark Grubb Knight Frank, while Bixby represented itself in the purchase. Matthews and Allen have also been retained to represent leasing for the building, which is targeted toward tenants seeking from 7k sf to 19k sf of space. The building improvements are scheduled to be completed in the fourth quarter of this year.
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