Bixby to Invest $25M for 'Dynamic' Redux

TUSTIN, CA—Bixby Land Co. has purchased 15771 Redhill Ave., a 79,756-square-foot office property here, from 15771 Red Hill LLC for $13.3 million. The firm plans to transform the building into a contemporary workplace, investing another $11.7 million into renovations that will include the addition of 10,000 square feet of space as well as interior and exterior upgrades.

The seller was represented in the transaction by Mike Hartell of Voit Commercial, while Bixby represented itself. This is Bixby's third building purchased in Orange County for creative-office development in the past year, marking the continuation of its strategy to deliver modern office projects with exceptional outdoor amenity areas. Bixby has invested more than $425 million in this strategy over the past three years and now has almost 700,000 square feet of projects in its development pipeline.

The firm recently completed its gen2 building in Irvine and is in final lease negotiations with a 30,000-square-foot tenant for two-thirds of that building. Bixby also just started construction on Avalon, a 46,000-square-foot office building at 1501 Quail St. in Newport Beach that is slated for occupancy in Spring 2015.

GlobesSt.com was unable to reach Bixby before deadline to discuss why this particular asset appealed to the firm.

According to Bill Halford, president and CEO of Bixby, “We are positioning this building with exterior upgrades that will markedly change the appearance of the building in order to appeal to companies looking for a dynamic office setting.”

The project architect is Boto Design Architects Inc., a Santa Monica, CA-based firm that has designed interiors for such clients as Yahoo!, Adidas and Mossimo. Plans for 15771 Redhill involve significant upgrades to the building elevations, including the extensive use of new window lines and custom, laser-cut metal screening and a glass pavilion at the main point of entry. The building interior will undergo a complete transformation to creative-office space, with exposed, high-volume ceilings and polished concrete flooring. It will also feature the Bixby Retreat, an energetic outdoor-amenities area featuring casual seating, fire pits, dining areas and multiple spaces for tenants to connect, collaborate or relax.

Upon completion, the roughly 90,000-square-foot building will be ideally suited for one or two tenants that value the style of highly amenitized office space.

According to Mike Severson, VP of investments at Bixby, “The creative-office campus we have planned for this site is in short supply and is aimed squarely at forward-thinking tenants that want a unique work environment. This acquisition is the continuation of Bixby's belief in the Orange County market and the high demand for innovative workspaces.”

Halford adds that there is a “demonstrated need for this type of space, something that we've repeatedly seen in Northern California, Los Angeles, Orange County and San Diego. The pace by which these properties have leased following completion confirms our belief that this is how and where companies prefer to operate.”