Renovating older San Diego buildings to increase the property's value and provide a wider range of viable real estate products is a necessary process in a supply-constrained market.
When Tappan Enterprises entered the San Diego commercial real estate market with the purchase of Parkwest Court at 16885 W. Bernardo Drive in Rancho Bernardo, the Tustin-based commercial property acquisition and management firm had its work cut out for it. Tappan bought the 50,431-square-foot office building in August 2006 and has recently commenced major renovations to enhance the value of the asset.
As soon as Tappan acquired the building, some infrastructure repairs needed to be addressed immediately. According to Tappan Enterprises Vice President Matt Wickstrom, the building suffered from significant deferred maintenance.
"Approximately one-third of the HVAC units needed to be replaced or repaired," Wickstrom said. "The building needed a new roof that did not leak and it needed a new sprinkler system for tenant safety in addition to needing more curb appeal."
Including the completed repairs and current rehabilitation efforts, the overall renovation costs will run approximately $500,000.
In collaboration with space planner Michelle Arnold-Kush of Lund, Vandruff and Kush, the architectural firm designing the renovation project, Tappan will provide new carpet, paint, granite countertops, parabolic lighting and elevator renovations in addition to custom stonework on the front entrances, exterior paint and roof tile staining. New Second Look ceiling tiles will replace existing tiles and all interior bathrooms, hallways, elevators and suites will be refurbished to match the new exterior color scheme. General contractors Watkins Landmark Construction will lead the two-phase renovation project and Heaviland Enterprises will help enhance the curb appeal with landscaping services.
The building currently features a distinguished window line with panoramic mountain views, men's and women's showers and onsite management provided by Tappan. Parkwest Court is currently occupied by tenants such as insurance firms, finance companies, alternative health care providers and government and military entities. Three spec suites are available at 814 square feet, 913 square feet and 1,205 square feet, as well as traditional suites ranging from 177 rentable square feet to 12,000 rentable square feet with short-term lease opportunities. Wickstrom believes the renovations will increase demand for office space.
"Tappan acquired this building because of its premier location. It is situated on over four acres of land less than a quarter mile from the Rancho Bernardo Road exit on Interstate 15 with great freeway visibility," Wickstrom said. "We view this investment as a value-add opportunity and with key improvements, it will have better amenities than some class B buildings in the area. Rental rates on the surrounding Class A assets are impossible to reach for many prospective users. Providing a well-positioned Class B property in this area will open doors for companies and individuals that would not normally be able to office in Rancho Bernardo."
Located in the heart of the Rancho Bernardo office sector, Parkwest Court's neighbors include Sony (NYSE: SNE), Hewlett Packard (NYSE: HPQ), Broadcom (Nasdaq: BRCM), General Atomics and Chase Mortgage.
John Hale, John Gross, Brian Driscoll and Gary Williams of Colliers International represented Tappan Enterprises in the purchase of the building while Mike Corbosiero, Jeb Bakke and Ryan Egli of CB Richard Ellis are the exclusive marketing and leasing agents for Parkwest Court.