Guthrie: It's similar to residential in that not every apartment project is ideal for condos. We look for strong demographics, neighborhoods with high per-capita income and cases where a husband and wife own a company and make the decision to buy close to their home. With smaller product, there's a higher likelihood of success if it's close to higher-end housing.

Also, we need to consider the unit size. If it's too small, it won't work, but there is a sweet spot: an incubator company that is about at the stage of owning its own property. Businesses that are start-ups or not fully established usually look to lease space, and it usually starts out small, but they may consider buying later. If a unit size is too small, it scares us, and if it's too big, there are more corporate types of companies who tend not to buy, but would rather lease.

We prefer to be in an overall purchase price under $1 million but over a $.5 million. The one exception is Foothill Business Park in Southern Orange County—it's more office-type users. The average Orange County office tenant is 3,500 square feet, which is small compared to other markets.

GlobeSt.com: What else can you tell us about the types of markets that are best for this property type?

Guthrie: This product type is very pro-Chinese. The Chinese have culturally a might higher propensity to own their own buildings. The San Gabriel Valley and the neighborhoods that flow out of it—Hacienda Heights, Diamond Bar—are a good spot for us. They are tight from a supply standpoint, particularly Pomona, Ontario and Chino. There is a high percentage of Chinese tenants and buyers in that market. The listing team is fluent in Mandarin and can work with Chinese buyers better than those who don't speak Mandarin. There's been an outpouring of capital form China.

Generally, the coastal communities work well for us, along with urban infill in L.A., Orange County and San Diego County along the coast. It's difficult to find land, so we have to repurpose and re-use to do conversions.

GlobeSt.com: What are the advantages for small users to own rather than rent in this market?

Guthrie: There are a couple of advantages. They can purchase the building individually and then lease it back to their company; then the rent becomes an expense and income offset by the depreciation of the amortization, so it's a good tax move. Their CPA will often suggest they do this. Also, in Northern Orange County, where the Brea project is located, there has been no new construction of small space since 2008. So, to own, the appreciation benefits are there. A lot of potential buyers are angry tenants whose last lease started in the middle of the recession and now they can't believe what their landlords are asking them to pay rent-wise. They can buy and pay a mortgage that's comparable to rent today.

GlobeSt.com: What else should our readers know about your company?

Guthrie: The message we're trying to send is that we are finally pedal to the metal. We're trying to take on as many of these projects as make sense for us.