development magazine tustin commons a tired asset comes of age

Office Redevelopment

DEVELOPMENT WINTER | 2009

A TIRED ASSET COMES OF AGE

By Lawrence R. Armstrong

With the recent credit crunch and economic downturn, ground up development is

rare these days. Tenants are re-shuffling, re-organizing and re-prioritizing. This shift

offers an opportunity for some of the less-than-stellar properties on today’s market to

shine beneath their 1970s paint scheme.


Tustin Commons

WINTER | 2009 DEVELOPMENT

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Renovations included a new corner entry plaza, landscape material and a renewal of the parking area.

Potential tenants are willing to consider an “old relic” if the loca-tion is right, the proposed re-image is right and, of course, the price is right. All it takes is a vision, collaboration and a great team of commercial real estate profession-als to reinvent an asset with the right fundamentals.

There are many viable ways to transform an existing property to make it more compelling and relevant in the current marketplace. Especially with today’s economic challenges, commercial real estate investment dollars need to be strategically utilized. An illustrative case study is “Tustin Commons,” a renovation project Ware Malcomb

recently designed for Stonewood Properties and their partner, Broachreach Capital Partners.

Tustin Commons is located in the city of Tustin, California. The existing Class C industrial campus included three 1970s concrete tilt up buildings totaling 209,486 square feet on 14.2 acres. Two of

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the three buildings were vacant flex/R&D buildings and the third was an occupied industrial build-ing. The existing property was zoned for industrial use. The two vacant buildings had previously been occupied by a single user and were empty for over a year before being purchased.

Timing is EverythingThe property is located in close proximity to Interstate 5, and a short distance from the Tustin Marketplace, a well-known retail development in Orange County. This area, once ripe for indus-trial and R&D users, was being squeezed by retail and office development. This dynamic was driving up rents and land prices, while driving out the pure industrial user. Timing, an important factor for this type of re-development, was right. There was very little new office development in the immedi-ate area, creating an opening in the market for quality, larger floorplate office product. The City of Tustin desired a higher/better use for this area, so they were in full support of the use change. There was only one major drawback: the buildings were antiquated, both aesthetically and functionally.

Repositioning for Highest and Best UseThe existing buildings presented several design challenges, some of which included:

• Dated building entries

• Very narrow vertical windows

• Heavy exposed aggregate on the concrete panels

• Outdated, ineffective HVAC and building systems

• Tired, inflexible lobbies, common areas

• Floorplans designed for a single user

• 1970s style landscaping, site lighting and signage

Stonewood Properties hired Ware Malcomb to provide architectural and interior design services for the project, with the overall goal of repositioning the project to realize its highest and best use. Several studies of the site were

completed, as well as the design of the building renovations for the two flex buildings, along with tenant improvements in the lobbies. Some of Stonewood Properties’ specific goals for the project included the following:

• Convert buildings from flex to office

• Convert buildings from single user to multi-user flexibility

• Re-image the building aesthetics

• Update the exterior facade, without demolishing the concrete panel

• Demolish and redesign the build-ing entries

• Update the project landscape, hardscape, site lighting and signage

• Create an alternative site plan for small building users

• Update the building core and lobbies

• Maximize the budget through creative, economical solutions

Based on Stonewood’s vision, the building was re-skinned with a smooth, modern finish, which re-oriented the window line while utilizing the existing window open-ings, and created a new contempo-rary entry statement. It was through the collaborative design process that the final re-image was realized.

“There was very little new office development in the immedi-ate area, creating an opening in the market for quality, larger floorplate office product. ”

BEFORE

Before the renovation, the two-story 1970s R&D buildings totaling 119,000 square feet looked tired and dated despite their A+ location.


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Collaboration was fundamental to the success of this project. Ware Malcomb worked closely with the project team in the design/cost/buildability review process. The team participants included Stonewood Properties; Broadreach Capital Partners; Ware Malcomb (Architects, Interior Designers); Gordon & Williams (General Con-tractor); Ed Monroe from NuWays Unlimited (Construction Manager); and The Raymond Group (Exterior EIFS System Contractor). Together the project team considered sev-eral options for each component, ultimately arriving at an effective design and cost solution.

One significant aesthetic chal-lenge was the existing façade. Ware Malcomb worked side-by-side with general contractor Gordon & Wil-liams to determine the best system for covering the exposed aggregate walls. One proposal included trying to remove the heavy aggregate in an attempt to create a smooth sur-face to apply a plaster skim coat. Raymond Group’s yard was visited to examine different mock-up appli-

Tustin Commons’ new skin of EIFS, herculite glass and doors provide a connection between the re-designed lobby and the outside plaza.

cations and determine which might be the best fit for the project. In the end, the EIFS system won out with the following effective design solutions:

• Create a new façade by covering the existing aggregate tilt-up exte-rior with a new EIFS system along with a combination reflective vi-sion and spandrel glass assembly, utilizing existing window open-ings.

• Demolish existing glass cube entry elements and design a mod-ern, new entry statement design utilizing existing openings.

• Demolish existing lobby core which only accommodated a single user and redesign the interiors with a central core, to accommodate multiple tenants and greater flexibility.

• Replace HVAC systems in both buildings.

• Add new landscaping, hardscape, exterior lighting and signage.

• Select a new project name to rebrand the property.

Taking a Closer Look The Myford Building, one of the two buildings renovated at Tustin Commons, had several unique issues. The building entry was tri-level with a lobby located at the mid-level between the first and second floor. This element gave the impression that the first floor was a subterranean basement, when in actuality, it was on grade. The other significant challenge was a diamond-shaped atrium opening in the middle of the second floor that created an inefficient floorplan.

The design solution for the My-ford Building included re-grading the site to allow for a traditional entrance on the first floor and the

AFTER



redesign of the lobby area. Thus, the basement feeling was eliminat-ed, and in its place an open grand entry plaza. Upgrades to the lobby and core included new restrooms, a new elevator, new staircase and up-grade to more current finishes. The new lobby is more open and brings in natural light. The atrium opening to the second floor was filled in to increase the square footage of the building by 2,449 square feet and to allow the building to be more effectively planned for multiple tenants.

Prior to completion of the entire renovation, Rockwell Collins signed a 10-year lease for the entire site at Tustin Commons.

Project vision, innovative design solutions and an integrated col-laborative team approach led to a successful project. The final result was a totally revitalized piece of property with a higher use, con-temporary image to compete in a tight market, flexible floor plate and long-term real estate value. There is great satisfaction in the completion of a renovation project which in-volves recycling of the demolished building materials and the opportu-nity to utilize more energy-efficient building systems. The end result of this collaborative effort provides

Establishing a collaborative process with a project team is imperative for success. Team members typi-cally include a real estate broker, architect, general contractor and construction manager. To work most effectively, the entire team must understand and work to meet the project’s proforma from the onset. The solution must balance all of the key factors of marketabil-ity, increased value of the asset, elevated design, practicality to execute and cost effectiveness.

Right now, there is a premium on creatively approaching commercial real estate. Don’t underestimate the potential value of an existing asset that has the right ingredients for reinvention. n

By Lawrence R. Armstrong, CEO, Ware Malcomb

Transforming two single-tenant buildings into a multi-tenant structure required the design of a common lobby, restroom facilities and secondary building entrances.

for a up-to-date and very attractive building with less impact on the environment.

The Take AwayWhat are ideal property types for renovation? There are several factors that existed in the Tustin Commons project, that are paral-leled in other successful renovation projects. These include the follow-ing factors:

• Great location, visibility and accessibility.

• Obsolete buildings for the current real estate market.

• Building and site design that lend themselves to conversion to higher and better use.

• Favorable planning and zoning.

“Project vision, innovative design solutions and an integrated collaborative team approach led to a successful project. The final result was a totally revitalized piece of property with a higher use, contemporary image to compete in a tight market, flexible floor plate and long-term real estate value.”


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development magazine tustin commons a tired asset comes of age

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