Hill: We knew going into this investment that we would have to overcome the dated existing conditions to attract prospective users to the project. Our redesign illustrated the exciting potential for an engaging and dynamic work environment. We worked out the design with IA Interior Architects, rebranded the project as Habitat, and were ready to begin construction when Karma took interest in the entire project. While Karma's specific needs for the space dictate a new design, we believe our ideas helped them see early on just how special this property could be.

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GlobeSt.com: How can developers and owners determine just what aspects of a property will satisfy tenants' needs?

Hill: Commercial buildings have to meet the functional work needs of companies—we get that—but that's a pretty low bar. We're more focused on developing inspired projects that spark the imagination. So much of what goes into the redesign of a project involves local demographics and the types of prospective users in a particular submarket. We can't necessarily take a certain design—be it the buildings, aesthetics or an amenity package—that has proven to succeed in Orange County and replicate it at a project we have in Portland. There may be some common elements, but each redesign has to emulate the lifestyles and workstyles of the neighborhood, how and where people want to work, how they might interact with each other and how they restore themselves physically and mentally.

GlobeSt.com: How much do tenants' needs vary among large office space users?
Hill: While the needs of tenants have commonality no matter the size, larger office space users usually expect a substantial collection of amenities and shared spaces. Our designs for Habitat included a massive interior common area with café, numerous outdoor amenity areas, a sandlot volleyball court and a fitness center with an indoor/outdoor pool.

GlobeSt.com: What else should our readers know about this transaction?

Hill: The investment strategy included the sale of an adjacent 4.7 acres to Chapman University for the expansion of its Irvine campus. Overall, our team did an excellent job of identifying and realizing the upside of this challenging investment opportunity.

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NEWPORT BEACH, CA—Commercial buildings have to meet the functional work needs of companies, but that's a pretty low bar, Bixby Land Co.'s EVP and COO Aaron Hill tells GlobeSt.com, explaining that the company is more focused on developing “inspired projects that spark the imagination.” As we previously reported, the firm recently completed the sale of the former Kawasaki USA headquarters in Irvine, CA, to Karma Automotive LLC for $56.25 million. Karma, an American car company that manufactures luxury hybrid plug-in vehicles, had previously leased the 262,463-square-foot facility in August 2016.

Bixby had initially acquired the project, located at 9950 Jeronimo Rd., with plans for a major repositioning into a dynamic workplace that would appeal to larger companies. Karma is underway with its own designs for the new headquarters location, including a Branded Experience Center for its new Revero luxury sedan and ample employee amenities inspired by Bixby's initial designs, which are in high demand by today's workforce.

We spoke with Hill about how the transaction is representative of amenities and tenant-demand trends in the Orange County office market.

GlobeSt.com: How does the Karma transaction reaffirm Bixby's designs and ability to meet tenant demands for amenities?

Hill: We knew going into this investment that we would have to overcome the dated existing conditions to attract prospective users to the project. Our redesign illustrated the exciting potential for an engaging and dynamic work environment. We worked out the design with IA Interior Architects, rebranded the project as Habitat, and were ready to begin construction when Karma took interest in the entire project. While Karma's specific needs for the space dictate a new design, we believe our ideas helped them see early on just how special this property could be.