Seagate constructed this high cube distrbution warehouse in anticipation of securing up to three tenants. The entitled land had been cquired as part of a larger industrial portfolio. Construction was completed on schedule and slightly under budget.
This 104 unit multi-family property was purchased as a value add opportunity in an “off market” transaction. The property was purchased in a joint-venture with a major pension fund advisor.
The two 1960’s vintage buildings enjoy an extrordinary location adjacent to Lighthouse Field State Beach, just steps from the beach and only a five minute drive from UC Santa Cruz. Though many of the units enjoy premium ocean views, the property had been “capital-starved”, suffered from dysfunctional management and was in need of substantial common area and unit upgrades.
Seagate purchased the property and implemented the renovation, achieving 35%-40% rental increases while also substantially improving the tenant profile.