Harbor Associates Completes Final Piece of $70 Million Office Portfolio Disposition

SEAL BEACH, Calif. - Jan. 8, 2024 - PRLog -- Harbor Associates, LLC ("Harbor")  in joint venture with Taconic Capital Advisors, LP has sold 451 E. Vanderbilt Way, a 115,520-square-foot Class A office building, the third and final transaction in a five-property $69.85 million office portfolio disposition in San Bernardino, CA.

The joint venture acquired the 368,000-square-foot portfolio off market in October 2019 for $41.7 million.  All five of the assets, ranging in size from 70,000 - 115,000 square feet, are located within the Tri City Corporate Center, a 153-acre master planned mixed-use office park with one million square feet of commercial office and 390,000 square feet of retail space.

Harbor re-positioned and leased up the assets through a renovation program that included an upgraded building entry and lobby experience, elevator improvements, new roof, and replacement of the original HVAC units. The portfolio had rent-ready spec suites, EV charging stations and a LED lighting retrofit performed by Harbor along with new building and project signage. During the hold period, the joint venture executed two separate leases with the County of San Bernardino, which represented two of the largest leases in the Inland Empire last year.

The partnership embarked on a portfolio break-up strategy beginning in November 2021 with the $8.9 million sale of 301 E. Vanderbilt Way, later selling 621, 625 and 685 E. Carnegie Drive in November 2022 in a single transaction for $34.175 million.

"Anthony DeLorenzo and Sammy Cemo of CBRE's Investment Properties, along with Philip Woodford, Kyle Yocum, and Michael Longo, also with CBRE, advised the Harbor/Taconic joint venture in the portfolio sale.
Last week, Harbor acquired a five-story, 164,683-square-foot Class A creative office building on Los Angeles' westside for $44.713 million.

"We see the long-term viability of well-located assets in high-barrier-to-entry Southern California markets and will continue to invest in office asset as values reset from their pre-COVID pricing levels" said Harbor Principal Paul Miszkowicz.

About Harbor: Harbor Associates, LLC (http://www.harborassociates.com) is a value-add operating platform focused on acquiring and repositioning under-performing commercial real estate assets throughout Southern California and Denver. Harbor has been involved in the renovation, repositioning and development of 40 office projects totaling over 4.5 million square feet with a portfolio value in excess of $1.0B. The company is a joint venture with The Bascom Group, LLC.