Harbor Expands Orange County Office Portfolio
The investment company continued its buying spree with the purchase of two office buildings in Southern California for $80 million.
Harbor Associates has acquired a two-building office portfolio in Orange County, Calif., for $80 million. The new owner will immediately begin renovations on the properties—Anaheim City Centre at 222 S. Harbor Blvd. in Anaheim and Crown Cabot at 28202 Cabot Road in Laguna Niguel—totaling 365,000 square feet. The seller was EQ Office, according to Yardi Matrix.
The 10-story Anaheim City Centre offers 195,000 square feet of Class A office space and is currently 83 percent leased, Harbor Principal Paul Miszkowicz told Commercial Property Executive. The seller was represented by CBRE’s Anthony Delorenzo, Todd Tydlaska and Michael Longo in the deal.
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The smaller six-story Crown Cabot offers 173,000 square feet of office space and is at 87 percent occupancy, Miszkowicz added. The tenant roster includes Morgan Stanley, Bank of America, Acrisure and ActivePDF. Newmark Knight Frank’s Kevin Shannon, Paul Jones and Blake Bokosky worked on behalf of the seller for this transaction.
Renovations will include lobby enhancements, building exterior improvements, new signage, move-in ready suites, electric car charging stations, LED lighting retrofits and upgrades to the bathrooms and corridors. Refurbishment is expected to be completed by mid-2020, Miszkowicz told CPE. Harbor also recently renovated a three-building, 211,000-square-foot office campus in Tustin, Calif., that later sold for $72.8 million.
As for the Orange County market, Harbor Principal Rich McEnvoy said that even though the two submarkets were different, both shared the same position to provide high-quality offices in areas that are lacking. He added that the two office buildings are well-located in Northwest and South Orange County to take advantage of the existing talent pool.
Sold on SoCal
The purchase of Anaheim City Centre and Crown Cabot is just another notch in Harbor’s plans for major acquisitions in California. Earlier this month, Harbor partnered with Taconic Capital Advisors to purchase a 368,000-square-foot five-building office portfolio in San Bernardino, Calif., for $41.7 million. And that sale came on the heels of Harbor’s purchase of Topaz, a Class A office property in Los Angeles, for $43.5 million.
Harbor now owns eight properties that total more than 1 million square feet in Orange County and has purchased 25 properties in the last five years. The company plans on buying even more to hit its goal of acquiring $250 million worth of assets in Southern California in the next 12 months. Currently, its regional footprint spans 2.7 million square feet.