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11/03/20
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A joint venture between Harbor Associates LLC and The Bascom Group LLC has acquired Stewart Plaza, a 94.5k sf medical office campus in Upland, for $10.25 mil ($108/sf). The asset was sold by a local family that has owned and operated the property since it was developed in 1987.
Stewart Plaza consists of two identical three-story Spanish style buildings on a five-acre lot. Located in an Opportunity Zone at 440 and 450 N. Mountain Ave, Stewart Plaza is currently 55% leased to both traditional and medical office tenants.
Harbor plans to re-position and lease-up the asset following a planned multi-million dollar capital improvement program that includes upgraded entry and lobby, elevator improvements, new roof, and replacement of the original HVAC units on both buildings. The property also will debut rent-ready spec suites, LED lighting retrofit as well as new building and project signage.
“The improvements are designed to breathe fresh energy into the project, which has never been renovated,” said Harbor Principal Joon Choi. “When completed later next year, Stewart Plaza will offer existing and prospective tenants efficient solutions in a new Class A environment.”
Upland is located at the foot of the San Gabriel Mountains 30 miles east of downtown Los Angeles. It is at the westernmost point of the Inland Empire, a region that encompasses both Riverside and San Bernardino Counties.
“The Inland Empire office market has shown resiliency in asking rates and vacancy despite the Covid-19 pandemic, added Harbor Principal Paul Miszkowicz. “Moreover, the market hasn’t seen meaningful new office construction since 2009 in an environment where vacancy has dropped from 21.2% to 8.8% over the last seven years. We think the market will do well coming out of the pandemic which bodes well for the execution of our lease-up strategy.”
“Harbor and Bascom have built a portfolio of 28 office buildings in Southern California and Colorado over the last six years with an aggregate square footage in excess of 3.75 msf,” said Bascom Managing Partner Jerry Fink. “We have a robust pipeline of activity behind this transaction and look forward to continuing to build our Southern California portfolio.”
Anthony Delorenzo, Gary Stache, and Sammy Cemo of CBRE advised the seller in the off-market transaction. Shaun Moothart, Jennifer Ansari, Dana Summers and Bruce Francis of CBRE arranged the financing for the project with Ready Capital Structured Finance.
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