Irvine, Calif. – Bixby Land Company has added another project to its expanding investment portfolio with the purchase of 26880 Aliso Viejo Parkway in Aliso Viejo, Calif. for $11.6 million 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 million buy of the Kawasaki headquarters building in Irvine last month.
The 53,115-square-foot building is located in Town Center Corporate Park, and 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.
“The demand for office space has shifted toward designs promoting collaboration and a progressive work environment,” said Mike Severson, senior vice president of investments for Bixby Land Company. “We’ve seen demand pivot toward contemporary space throughout the state, and the speed with which these properties lease continually reinforces our investment strategy,” added Severson.
Bixby has been more widely known for undertaking projects that require significant development to be converted to creative office. This project, built in 2000, requires little exterior work. Instead, Bixby will focus its efforts in the lobby and tenant spaces.
“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 7,000 to 19,000 square feet of space. The building improvements are scheduled to be completed in the fourth quarter of this year.