Harbor Associates, LLC, has added The Commons at Valencia Gateway to its growing Southern California portfolio, the company announced Monday in a news release.
In a $33.1 million, all-cash deal, Harbor acquired the 156,628 square-foot office campus on 10.25 acres at 25124 Springfield Court, its 11th acquisition in the last three years. The two-building campus, built in 2005 off Valencia Boulevard, is currently 81 percent leased to 15 tenants.
The purchase was a joint venture of Long Beach-based Harbor and Goldman Sachs Asset Management Private Real Estate.
“The recently approved 5,000+ homes approved at the Newhall Ranch, coupled with the Disney|ABC Studios at The Ranch’s 58-acre soundstage development will provide new demand drivers to what is already a fundamentally sound office submarket,” Harbor Principal Paul Miszkowicz said in the release. “We continue to find compelling opportunities in suburban office locations that are out of favor with many institutional investors through our deep network of brokerage relationships and ability to move quickly and close all-cash.”
Harbor plans to renovate common areas at Commons at Valencia Gateway, plus build out “new spec suites to provide a best in-case workplace” while “implementing energy saving improvements like EV charging stations and LED lighting,” according to the release. The campus already features a two-story parking structure at a 4:1,000 parking ratio.
“We believe that, despite the negative stigma surrounding the concept of suburban office, the fundamentals for certain properties in this sub-property type can be quite compelling,” Joseph Sumberg, co-head of GSAM PRE, said in the release. “We are interested in pursuing other compelling opportunities to purchase best-in-class assets like the Commons at Valencia in fundamentally attractive suburban markets.”
Harbor’s full portfolio now includes more than 1 million square feet of office space across Southern California and in Denver.
