Drachman: It was an exciting opportunity to acquire an office campus off market in a dynamic submarket. The campus is perfect for large corporate users who are looking to take advantage of excellent amenities, efficient floor plates, and a high-quality local labor pool.

GlobeSt.com: What are the challenges to marketing/repositioning assets to larger users?

Drachman: You have to make sure you acquire projects that meet what the current demand is for office space. Many larger users now require access to local amenities and great outdoor space as they look to attract and retain their best employees. Quality office space is no longer an afterthought for many larger users and they use their office space to create the sense that they want their employees to have the best. You need to make sure you are acquiring assets that can provide this to tenants, and then you to need to make sure you deliver a strong brand to the tenant where they feel your project is different than the rest of the competition. Larger users do not want commodity, generic product anymore.

GlobeSt.com: What are the specific needs of larger office users of which owners should be aware?

Drachman: Larger office users need to make sure their space is efficient and easily accessible by their employees. They want spaces that offer outdoor areas to take advantage of the great climate in Southern California. Larger users want great local access to a variety of amenities including retail, hospitality and residential projects.

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

Drachman: Our ownership group truly believes we have bought a project that will check all the boxes for any larger users in the marketplace. Our group will also continue to be focused on acquiring office projects like this in Southern California where we can purchase projects below replacement costs and then drive tenant demand by creating a best-in-class office experience. We acquired this asset all cash in a short closing time frame and can move just as quickly on future transactions.

ALISO VIEJO, CA—Quality office space is no longer an afterthought for many larger users, and they use their office space to create the sense that they want their employees to have the best, Newport Beach, CA-based Stillwater Investment Group founder John Drachman tells GlobeSt.com. The firm, in a joint-venture partnership with CrossHarbor Capital Partners, recently acquired a three-building, 161,000-square-foot office campus at 26600, 26650 and 26700 Aliso Viejo Pkwy. here for $36 million from Cavium Inc., which was represented by Byron Foss and Greg Tippin with Newmark Grubb Knight Frank.

Built in 1999, the campus encompasses three, two-story buildings with 2.5 acres of excess land. The site has been the corporate headquarters for QLogic, a wholly owned subsidiary of Cavium Inc., a global leader and technology innovator in high-performance server and storage networking connectivity products. On the heels of the acquisition of QLogic by Cavium in August 2016, it was announced that QLogic would relocate its remaining Orange County operations to the Irvine Spectrum.

We spoke with Drachman about the acquisition and the challenges to marketing assets to larger users.

GlobeSt.com: What stands out for you about the Aliso Viejo office acquisition?

Drachman: It was an exciting opportunity to acquire an office campus off market in a dynamic submarket. The campus is perfect for large corporate users who are looking to take advantage of excellent amenities, efficient floor plates, and a high-quality local labor pool.

GlobeSt.com: What are the challenges to marketing/repositioning assets to larger users?

Drachman: You have to make sure you acquire projects that meet what the current demand is for office space. Many larger users now require access to local amenities and great outdoor space as they look to attract and retain their best employees. Quality office space is no longer an afterthought for many larger users and they use their office space to create the sense that they want their employees to have the best. You need to make sure you are acquiring assets that can provide this to tenants, and then you to need to make sure you deliver a strong brand to the tenant where they feel your project is different than the rest of the competition. Larger users do not want commodity, generic product anymore.

GlobeSt.com: What are the specific needs of larger office users of which owners should be aware?

Drachman: Larger office users need to make sure their space is efficient and easily accessible by their employees. They want spaces that offer outdoor areas to take advantage of the great climate in Southern California. Larger users want great local access to a variety of amenities including retail, hospitality and residential projects.

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

Drachman: Our ownership group truly believes we have bought a project that will check all the boxes for any larger users in the marketplace. Our group will also continue to be focused on acquiring office projects like this in Southern California where we can purchase projects below replacement costs and then drive tenant demand by creating a best-in-class office experience. We acquired this asset all cash in a short closing time frame and can move just as quickly on future transactions.