RANCHO CUCAMONGA, CA-GlobeSt.com has learned exclusively that national real estate investment-management firm Buchanan Street Partners has acquired a 75,000-square-foot, class-A building in HavenPark, a prestigious master-planned office campus here. The firm purchased the institutional-grade property for $10.6 million, or $141 per square foot.
Tim Ballard, president of BSP, tells GlobeSt.com that the seller was a partnership with Texas-based Thackeray Partners and was selling because a loan on the building was coming due. He adds that his firm plans to hold the property for some time. “It’s 89% leased, with very limited rollover. We will hold it for awhile and watch the market improve.”
While the entire Inland Empire has been slow to recover, Rancho Cucamonga remains one of the premier addresses in the area, and Ballard tells GlobeSt.com that his firm has learned during its due diligence in underwriting the asset that there will be a significant amount of large-tenant activity happening shortly to appreciably move vacancy rates down in the area. While none of these deals have yet been signed, he anticipates them having a sizable impact on the area’s office occupancy.
Regarding HavenPark, Ballard said in a prepared statement that the firm regards it as “one of the highest-quality low-rise projects in the region and remains a premier option for tenants seeking top-tier space. This is an appealing investment for Buchanan Street due to the building’s excellent physical quality, strong leasing and location.”
Built in 2007 and located at 9680 Haven Ave., the property has excellent access and visibility at the intersection of Haven Ave. and Fourth St., two major arterials that offer good access to area freeways serving the Ontario Airport submarket. Ontario International Airport is approximately 1 mile south of the property.
The building features high-quality finishes, functional floor plans and spacious window lines. A covered parking structure provides above-standard parking at 4.4 spaces per 1,000 square feet and attracting landscaping and grounds complement the exterior improvements.
The property benefits from abundant nearby retail amenities, including several restaurants and a hotel within the office campus. Ontario Mills Mall is located 1 mile to the east.
BSP’s ability to close quickly allowed the firm to acquire the HavenPark property at an estimated 40% below replacement cost. Wells Fargo provided 70% loan-to-cost financing for the acquisition, with BSP providing the equity to complete the transaction.
“We are pleased to acquire this high-caliber building at a significant discount to replacement costs,” said Kimberly Stevenson, VP with BSP, in a prepared statement.
As GlobeSt.com previously reported, in March GlobeSt.com and Buchanan Street Partners were two of hundreds of real estate industry entities who celebrated the 3rd Encore for Education charity concert in Santa Ana, CA. Encore for Education is underwritten by sponsors from the CRE industry to support 501
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
