Challenge
Historically the Laguna Hills office market is the low-cost alternative for tenants wanting to office in proximity to the Irvine Spectrum. The Mill Creek Office Park is located just across Lake Forest road from the Bacchus and Brenexus office buildings with an Irvine Address. Originally built as two free standing properties, this property was being sold as one parcel. Our challenge was splitting the parcel to two separate APN numbers and delivering quality improvements that will allow tenants or buyers to look past the zip code and focus on the efficiency of a free-standing single-level building.

Case Study
The 13,690 SF was purchased for $230 per sf with the anticipation of a complete renovation including a new roof and all mechanical systems. During escrow the buyer was able to successfully split the parcel into two separate APN numbers as originally intended for by the developer prior to the close. Approximately $60 per sf was invested into contemporary improvements; polished concrete, exposed ceilings, new kitchen, and restrooms. The 23042 property was restored to a single tenant building and the 23032 buildings was split into a two-tenant property. Prior to the completion of the renovation, the building was listed for sale or lease.

Result
The 23042 building was marketed for sale or lease during construction to attract a buyer that would want to select building finishes prior to completion. The 7,039 sf building closed escrow at $360 per sf. The 23032 property was marketed with conceptual images prior to completion of improvements and two tenants were secured at $2.54 MG effective rate for new 60 month terms.