- Client:Japanese Firm
- Project Completion: January,1990
- Work Executed:Location Select
Project Planning for Establish Commercial Building
- Floor Space:28,000 sq. ft
- Location:20250 Acacia St
Newport Beach, CA
In response to a request from a Japanese company, we launched development plans for a two-story office building (with one floor underground) in the city of Newport Beach, Orange County.
They bought old six neighboring dwellings and integrated the different land use classifications. An application for zoning change from residential purposes to commercial/office building purposes was submitted and the approval has been received.
In the course of constructing of this office building, we started to serve as the rental agent for the building and determined to pre-lease 40% of the space of the building prior to completion. After development of the project, we continue to offer real estate management service and report back to the client regarding monthly investment earnings.
1. Restricted Land Use
In the early 1990’s, the sale prices of commercial real estate lands and buildings generally increased. Especially in Newport Beach City, the climate conditions and location were both good and therefore, land prices became much higher than the national average.
Under the limited budget and space for the land, in order to ensure maximum rent can be achieved for the space by taking ROI into consideration, we planned to build a post-tension slab underground parking garage.
At that time, the combination of a small-scale office building and underground parking garage, in other words, the concept of “project execution cost vs. rental income” was not very popular; so we often got a cold stare from other real estate developers similar to us.
2. Site Selection
In the course of site selection, we negotiated individual purchases of six neighboring dwellings within a predetermined period of time.
During the purchase negotiation process, we simultaneously proceeded with not only the business planning for development of this office building but also related architectural designs.
Immediately after purchase of all of these six dwellings, both applications for land reclamation permits and zoning change were submitted and the approvals have been received. We then commenced the construction work of the project.
Use of Retouched Photos
Under our company’s confidentiality and compliance agreement, some indoor equipment and people associated with this project are shown in retouched photos.