Article published in NAIOP\'s national magazine Development. Addresses how to reposition older commercial real estate assets through design.

1. Office Redevelopment
Tustin
Commons 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.
DEVELOPMENT WINTER | 2009

2. www.naiop.org
Renovations included a new corner entry plaza, landscape
material and a renewal of the parking area.
Potential tenants are willing to There are many viable ways to recently designed for Stonewood
consider an “old relic” if the loca- transform an existing property Properties and their partner,
tion is right, the proposed re-image to make it more compelling and Broachreach Capital Partners.
is right and, of course, the price relevant in the current marketplace.
is right. All it takes is a vision, Especially with today’s economic Tustin Commons is located in
collaboration and a great team of challenges, commercial real estate the city of Tustin, California. The
commercial real estate profession- investment dollars need to be existing Class C industrial campus
als to reinvent an asset with the strategically utilized. An illustrative included three 1970s concrete
right fundamentals. case study is “Tustin Commons,” a tilt up buildings totaling 209,486
renovation project Ware Malcomb square feet on 14.2 acres. Two of
WINTER | 2009 DEVELOPMENT

3. Office Redevelopment BEFORE
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
Before the renovation, the two-story 1970s R&D buildings totaling 119,000
been occupied by a single user and
square feet looked tired and dated despite their A+ location.
were empty for over a year before
being purchased.
completed, as well as the design of
Timing is Everything Repositioning the building renovations for the two
The property is located in close for Highest and flex buildings, along with tenant
improvements in the lobbies. Some
proximity to Interstate 5, and a Best Use of Stonewood Properties’ specific
short distance from the Tustin
The existing buildings presented goals for the project included the
Marketplace, a well-known retail
several design challenges, some following:
development in Orange County.
This area, once ripe for indus- of which included:
• Convert buildings from flex to
trial and R&D users, was being office
squeezed by retail and office • Dated building entries
development. This dynamic was • Very narrow vertical windows • Convert buildings from single
driving up rents and land prices, user to multi-user flexibility
• Heavy exposed aggregate on the
while driving out the pure industrial • Re-image the building aesthetics
concrete panels
user. Timing, an important factor
• Outdated, ineffective HVAC and • Update the exterior facade,
for this type of re-development,
building systems without demolishing the concrete
was right. There was very little new
panel
office development in the immedi- • Tired, inflexible lobbies, common
ate area, creating an opening in the areas • Demolish and redesign the build-
market for quality, larger floorplate ing entries
• Floorplans designed for a single
office product. The City of Tustin • Update the project landscape,
user
desired a higher/better use for this hardscape, site lighting and
area, so they were in full support of • 1970s style landscaping, site signage
the use change. There was only one lighting and signage
• Create an alternative site plan for
major drawback: the buildings were
Stonewood Properties hired Ware small building users
antiquated, both aesthetically and
functionally. Malcomb to provide architectural • Update the building core and
and interior design services for lobbies
the project, with the overall goal
of repositioning the project to • Maximize the budget through
realize its highest and best use. creative, economical solutions
Several studies of the site were
Based on Stonewood’s vision,
the building was re-skinned with
a smooth, modern finish, which
“There was very little new office development in the immedi- re-oriented the window line while
utilizing the existing window open-
ate area, creating an opening in the market for quality, larger ings, and created a new contempo-
floorplate office product. ” rary entry statement. It was through
the collaborative design process
that the final re-image was realized.
DEVELOPMENT WINTER | 2009

4. www.naiop.org
AFTER
Tustin Commons’ new skin of EIFS, herculite glass and doors provide
Collaboration was fundamental to a connection between the re-designed lobby and the outside plaza.
the success of this project. Ware
Malcomb worked closely with
the project team in the design/
cost/buildability review process. cations and determine which might • Add new landscaping, hardscape,
The team participants included be the best fit for the project. In exterior lighting and signage.
Stonewood Properties; Broadreach the end, the EIFS system won out
• Select a new project name to
Capital Partners; Ware Malcomb with the following effective design
rebrand the property.
(Architects, Interior Designers); solutions:
Gordon & Williams (General Con-
tractor); Ed Monroe from NuWays
• Create a new façade by covering Taking a Closer Look
the existing aggregate tilt-up exte-
Unlimited (Construction Manager); The Myford Building, one of the
rior with a new EIFS system along
and The Raymond Group (Exterior two buildings renovated at Tustin
with a combination reflective vi-
EIFS System Contractor). Together Commons, had several unique
sion and spandrel glass assembly,
the project team considered sev- issues. The building entry was
utilizing existing window open-
eral options for each component, tri-level with a lobby located at the
ings.
ultimately arriving at an effective mid-level between the first and
design and cost solution. • Demolish existing glass cube
second floor. This element gave the
entry elements and design a mod-
impression that the first floor was
One significant aesthetic chal- ern, new entry statement design
a subterranean basement, when
lenge was the existing façade. Ware utilizing existing openings.
in actuality, it was on grade. The
Malcomb worked side-by-side with
• Demolish existing lobby core other significant challenge was a
general contractor Gordon & Wil-
which only accommodated a diamond-shaped atrium opening in
liams to determine the best system
single user and redesign the the middle of the second floor that
for covering the exposed aggregate
interiors with a central core, to created an inefficient floorplan.
walls. One proposal included trying
accommodate multiple tenants
to remove the heavy aggregate in The design solution for the My-
and greater flexibility.
an attempt to create a smooth sur- ford Building included re-grading
face to apply a plaster skim coat. • Replace HVAC systems in both
the site to allow for a traditional
Raymond Group’s yard was visited buildings.
entrance on the first floor and the
to examine different mock-up appli-
WINTER | 2009 DEVELOPMENT

5. Office Redevelopment
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. Transforming two single-tenant
for a up-to-date and very attractive buildings into a multi-tenant
Prior to completion of the entire building with less impact on the structure required the design
renovation, Rockwell Collins signed environment. of a common lobby, restroom
a 10-year lease for the entire site facilities and secondary building
at Tustin Commons.
The Take Away entrances.
Project vision, innovative design
What are ideal property types
solutions and an integrated col-
for renovation? There are several
laborative team approach led to a
factors that existed in the Tustin Establishing a collaborative process
successful project. The final result
Commons project, that are paral- with a project team is imperative
was a totally revitalized piece of
leled in other successful renovation for success. Team members typi-
property with a higher use, con-
projects. These include the follow- cally include a real estate broker,
temporary image to compete in a
ing factors: architect, general contractor and
tight market, flexible floor plate and
construction manager. To work
long-term real estate value. There is • Great location, visibility and most effectively, the entire team
great satisfaction in the completion accessibility. must understand and work to meet
of a renovation project which in-
• Obsolete buildings for the current the project’s proforma from the
volves recycling of the demolished
real estate market. onset. The solution must balance
building materials and the opportu-
all of the key factors of marketabil-
nity to utilize more energy-efficient • Building and site design that
ity, increased value of the asset,
building systems. The end result lend themselves to conversion
elevated design, practicality to
of this collaborative effort provides to higher and better use.
execute and cost effectiveness.
• Favorable planning and zoning.
Right now, there is a premium on
creatively approaching commercial
real estate. Don’t underestimate
“Project vision, innovative design solutions and an integrated
the potential value of an existing
collaborative team approach led to a successful project. The asset that has the right ingredients
final result was a totally revitalized piece of property with a for reinvention. n
higher use, contemporary image to compete in a tight market,
flexible floor plate and long-term real estate value.” By Lawrence R. Armstrong,
CEO, Ware Malcomb
DEVELOPMENT WINTER | 2009

6. www.naiop.org
WINTER | 2009 DEVELOPMENT

7. Office Redevelopment
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