May 2, 2016
By Dennis Kaiser
Irvine-based PRES Companies, along with joint venture partners CitiVest and Bitcentral, recently launched 4340 Von Karman in Newport Beach, CA. Connect Media asked David Bonaparte, managing principal of PRES, how and why the market’s only Class A office condominium project came to fruition.
Q. Where do office condos fit in the marketplace? Why are they attractive, compared to co-working spaces that are so popular now?
Co-working spaces certainly have their place, but there is strong demand from owner-users for office space in Orange County. There is a very limited supply of high-end office buildings available for small-to-mid sized business owners to purchase in Orange County. An office condominium bridges the gap—it gives the 1,000-square-foot small business an opportunity to purchase a piece of a Class A office building in a prime location. Also, business owners can lock in the security of a fixed real estate cost, and can own a piece of real estate that is anticipated to appreciate over the coming years.
Q. What kinds of companies are best suited for them and why?
A wide variety of industries – law firms, tech companies, financial services, and others are interested in purchasing. The buyer profile is locally based, small-to-mid-sized companies looking for a long-term home in a high-end, high-profile location.
Q. What are the considerations when comparing a traditional office lease vs an office condo?
PRES has been successful with its office condo projects. This is our fourth one in Orange County. There is a lot of work that goes into transitioning from traditional office to office condos—not only with physical improvements but also with city and county ordinances. Ultimately, we see the opportunity to provide a product that isn’t available here. From an investment standpoint, that is always attractive.