Harbor Associates, LLC (“Harbor”) has acquired Conejo Spectrum, a 159,186 square foot, two building, office and flex portfolio in a joint venture with The Bascom Group, LLC (“Bascom”) for $13,000,000 or $81 per square foot. Harbor sourced the asset through a distressed auction bid process from seller CW Capital and closed 21 days later. The portfolio marks the sixth value-add office acquisition for Harbor in the last eighteen months and expands the firm’s existing footprint in Southern California. Pine River Capital Management was the external manager for the lender. Sean Fulp of NGKF represented the seller in the transaction.
Conejo Spectrum is the lowest price per square foot in the City of Thousand Oaks since 2001, a period in which 30 different commercial assets transacted within the submarket. The portfolio is currently 78% leased to six different tenants.
Harbor is planning to reposition and lease-up the asset through a comprehensive rebranding and renovation program that includes spec suites, a fresh paint scheme, modern lobbies, drought tolerant landscaping package, along with new building and project signage. The two-building portfolio is comprised of an office building located at 1525 Rancho Conejo Blvd. and a flex building located at 1535 Rancho Conejo Blvd.
The buy for Harbor is the firm’s sixth acquisition since forming in early 2015, coming on the heels of Harbor’s creative office purchase of ‘Create Tustin’ & ‘Bespoke Tustin’ in Tustin, California, ‘5280 Carroll Canyon’ in San Diego, California, ‘71 At The Park’ in Lake Forest and ‘Bespoke Irvine’ in Irvine, California.
Paul Miszkowicz, Principal for Harbor, comments, “Conejo Spectrum represents our sixth value-add office acquisition in the last eighteen months in Southern California and our first in the Los Angeles region. We intend on building on our recent momentum by sourcing new opportunities and pursuing similar strategies in high demand Southern California submarkets in order to meet our acquisition goal of $250M by year end 2017”.
Joon Choi, Principal for Harbor, states, “We saw this great opportunity to upgrade a two-building campus situated on over 14 acres in Thousand Oaks, and the whole site will undergo a comprehensive renovation with updated common areas and multiple new spec suites.”
Justin Loiacono, Principal for Harbor, adds, “We continue to find distressed opportunities in the value-add space by jumping on deals that require a quick closing performance. We completed all due diligence and closed this transaction wire to wire in 21 days with our capital partner, The Bascom Group, LLC. We have a robust pipeline of activity behind this transaction and look forward to further building out our Los Angeles metro portfolio.”
About Harbor: Harbor Associates, LLC (www.harborassociates.com) is a value add operating platform focused on acquiring and repositioning under-performing commercial real estate assets throughout Southern California. The three Principals of Harbor have over 25 years of experience in Southern California and have closed over $1.7B in acquisitions and asset managed over $2.5B in assets totaling over 3M SF of office. The company is a joint venture with The Bascom Group, LLC.
About Bascom: The Bascom Group, LLC is a private equity firm specializing in value-added multifamily, commercial, non-performing loans, and real estate related investments and operating companies. Bascom sources value-added and distressed properties including many through foreclosure, bankruptcy, or short sales and repositions them by adding extensive capital improvements, increasing revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom, founded by principals Jerry Fink, David Kim, and Derek Chen, is one of the most active and seasoned buyers and operators of apartment communities in the U.S. Bascom has completed over $12 billion in multifamily and commercial value-added transactions since 1996 including more than 300 multifamily properties containing over 80,000 units. Bascom has ranked among the top 50 multifamily owners in the U.S. Bascom’s subsidiaries and joint ventures include the Southern California Industrial Fund, Rushmore Properties, Bascom Portfolio Advisors, Shubin Nadal Associates, Spirit Bascom Ventures, REDA Bascom Ventures, MHF RM Holdings, Bascom Northwest Ventures, Bascom Arizona Ventures, Harbor Associates, Village Partner Ventures, and the Realm Group. Bascom’s subsidiaries also include Premier Business Centers, the largest privately held executive suite company in the U.S. For additional information, please visit www.bascomgroup.com.
About Pine River: Pine River Capital Management (www.pinerivercapital.com) is a global alternative asset management firm founded in 2002 that invests across multiple sectors, including commercial real estate, on behalf of various entities. Direct commercial real estate investments target first mortgage loans, mezzanine loans, b-notes and preferred equity on commercial real estate.