67.5 F
Laguna Hills
Thursday, Jun 20, 2024

Harbor Associates Begins Overhaul of Aliso Viejo Offices

15 & 25 Enterprise Rebranded as Parkline

A pair of notable South Orange County offices are getting a wellness-focused facelift, after trading hands last year for $92 million.

Harbor Associates LLC, a Long Beach-based real estate investor that does much of its work in Orange County, and Chicago-based Singerman Real Estate have begun renovation of 15 and 25 Enterprise, a pair of five-story offices built about 20 years ago at the Summit Office Campus in Aliso Viejo.

The two buildings total about 295,000 square feet alongside the San Joaquin Hills (73) Toll Road.

The project will convert the buildings into a “wellness, work and community focused office campus” called Parkline, according to Allison Schneider Kelly, a senior vice president of advisory and transaction services in the Newport Beach office of CBRE, which handles leasing for the project.

“Harbor is very excited to create South Orange County’s first wellness-oriented workplace, in a post-pandemic environment,” Harbor Principal Rich McEvoy said. “Parkline project improvements are specifically designed to meet the needs of today’s tenants by focusing on what they desire the most; the support of employee health, and on-site lifestyle amenities worthy of a return to the office.”

Parkline will include new outdoor amenities and design, as well as upgraded lobbies, restrooms and innovative office space, while maintaining the same footprint within the 1.7 million-square-foot master-planned office campus.

The buildings are expected to finish upgrades by the second quarter of 2023.

Tenant Mix

Harbor has been planning a renovation of the campus since acquiring it in March 2021; the venture paid about $310 per square foot for the two buildings. The sale is the priciest deal that Harbor Associates has ever been involved in.

The buildings were about 80% leased at the time of sale to a mix of technology, life science and financial service firms; tenants include mortgage lender Carrington Mortgage Services, vitamin and supplement maker Metagenics and device maker MicroVention, which also occupies another full building nearby at the Summit.

The 15 Enterprise building is currently 70% leased, according to CoStar Group, while 25 Enterprise is fully occupied with the largest tenant being Vylla, an affiliate of Carrington Mortgage Services, which occupies north of 90,000 square feet.

Suburban Strategy

Harbor is backed financially in part by Bascom Group, an Irvine-based real estate investor best known for its large national apartment portfolio, but which also funds a number of additional investment, development and shared space businesses in the area.

Harbor initially focused on small and midsized offices locally, but has been looking bigger in recent years.

Prior to the Summit acquisition, Harbor made two of its largest deals in the region in 2019 when it bought two office properties in downtown Anaheim and in Laguna Niguel for about $80 million combined.

Harbor has refocused its acquisition strategy in the past year to include mid- or low-rise projects in walkable suburban areas, choosing to “shy away from more traditional, high-rise, commodity products,” Justin Loiacono, one of four principals at Harbor Associates, previously told the Business Journal.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!


Featured Articles


Related Articles