Commercial property manager RiverRock Real Estate Group Inc. is doubling down on its Orange County footprint, acquiring a 20,400-square-foot Irvine office building near the intersection of the San Diego (405) Freeway and Von Karman Avenue that will hold its new headquarters.
It’s the first personal investment for RiverRock, which typically manages properties on behalf of its clients.
The company is the 10th largest property manager in OC, with about 9.4 million square feet managed locally last year. Its total portfolio of managed properties runs about 27.6 million square feet.
“The financials suited us better than a lease, and allows us to invest in a space for the long haul,” said RiverRock founder and principal John Combs, whose company has long been based in Newport Beach’s 100 Bayview office complex, a few miles away from the new headquarters.
Combs formed a venture for the purchase with Sheldon Harte, founder of Harte Brownlee & Associates. They were represented by Savills Corporate Managing Director Brad Schmitt and Executive Vice President Royce Sharf in the transaction.
The price was not immediately disclosed, but sources indicate the building traded for about $7.5 million, or about $368 per square foot.
“This sale was a year-long process that really began with [Combs] envisioning the future of his company, and wanting to create a long-term presence that attracts and retains talent,” Schmitt said.
Ex-SunCal HQ
The building was previously the long-term headquarters for real estate master developer SunCal Cos., and was owned by an entity affiliated with Chief Executive Bruce Elieff.
Elieff sold the building as part of personal bankruptcy proceedings involving several properties, according to court documents.
The bankruptcy cases are a result of a long-running dispute between Elieff and former business partner Todd Kurtin; which led to a 2017 judgment against Elieff for roughly $31 million, according to court documents.
SunCal’s new headquarters location hasn’t been disclosed.
The seller, listed as Morse Properties LLC, was represented by CBRE Senior Vice President Carol Trapani and Senior Vice President Allison Schneider Kelly.
The new deal marks a significant expansion for RiverRock, which Combs launched 15 years ago.
The company’s Newport Beach office ran about 12,000 square feet.
“Owning the building will allow us the flexibility to grow and make space changes as we see fit,” said President Steve Core.
Healthy Renovation
The company is planning an extensive renovation for the just-bought building, first built in 1980.
Irvine-based LPA is heading the office overhaul, which will prioritize health, wellness and culture in the wake of COVID-19.
“Our new space will take into account what we want for our workplace culture, as well as what we’ve learned about how space has to perform for workers now and into the future,” Combs said. “It will be a prototype for how to think differently about workplace design.”
The company said about 60 people will be based out of the new office, with staff maintaining the option to work remotely.
“The flexibility is here to stay,” Core said.
The new office will be designed with the Fitwel designation goal, a building certification that emphasizes occupant health and productivity, addressing things like air quality, walkability and CDC guidelines.
“We are embracing the latest technologies and innovation surrounding workplace design,” Combs said. Examples for the new RiverRock campus include indoor-outdoor gathering spots, a new health-focused café instead of a lunchroom, solar panels, art installations and making the office pet friendly.
Construction is slated to wrap by next March.
