Value-Adds Harder to Find
The aftermath of the recession was a good time to look for value-add deals in SoCal, provided you had the dosh to snap up a property, but these days value-adds are becoming harder to find, Avison Young principal Dan Vittone tells us (snapped with son Damian, whose understanding of value-add translates to adding apple sauce to anything). But there are parts of the Inland Empire where the office recovery is just underway and larger vacancies still persist. The further from the coast, Dan says, the better chance to you have of finding a value-add office property.
Dan, along with colleague Alan Pekarcik (both in the Irvine office), recent repped Providence Capital Speed Fund II in its acquisition of 355 East Rincon St, a 58k SF office building in Corona, in a deal that Dan characterizes as a value-add. Dating from 2003, the building was 51% occupied at the time of the sale (you could win a presidency with that kind of percentage), and will benefit from the IE’s rising absorption and rentals rates, according to Dan. The seller, Rincon Holdings, was repped by CBRE.
