JV plans to acquire $500m in assets in next two years
Harbor Associates and joint venture partner The Bascom Group plan to acquire $500 million in assets throughout the western United States over the next two years. The joint venture has already acquired office buildings in Los Angeles and Del Mar, Calif., in separate transactions totaling $37.4 million.
The two companies have invested more than $250 million in a portfolio of 18 office buildings with an aggregate square footage of 1.2 million square feet in Southern California and Colorado over the past three years.
The expansion of the joint venture platform is an example of the collaborative vision the two companies share, according to Bascom managing partner Jerry Fink.
In the larger of the two acquisitions, the joint venture acquired a 75,000-square-foot office building at 4130 Cahuenga Blvd. in the Los Angeles submarket of Toluca Lake for $21.7 million. The business plan calls for a multimillion-dollar capital improvement program to modernize and refresh the asset. As part of the renovation, the project will receive substantial cosmetic upgrades to the building exterior, lobby and common areas, according to Harbor principal Joon Choi.
The Harbor-led joint venture also acquired a 39,000-square-foot office building at 2010 Jimmy Durante Blvd. in Del Mar for $15.7 million. The two-story property is located within a half-mile of the beach and downtown Del Mar and within a quarter-mile of the 370-acre Del Mar Fairgrounds. Harbor will rebrand the project as The Bungalows at Del Mar with major renovations to include a new modern paint scheme throughout the project, installation of bike and surfboard storage, along with new outdoor showers and new outdoor seating and collaboration areas. The tenant suites include operable windows and vaulted ceilings presenting a unique creative office experience in coastal San Diego, according to Harbor principal Paul Miszkowicz.
Harbor Associates is a value-add operating platform focused on acquiring and repositioning underperforming commercial real estate assets throughout Southern California, and The Bascom Group is a private equity firm specializing in value-added multifamily, commercial, and nonperforming loans and real estate–related investments and operating companies.