Long Beach, CA, November 17, 2009: The Abbey Company is pleased to announce its
acquisition of Cerritos Corporate Center, a 465,000 square foot commerce park consisting of seven
(7) multi-tenant office and industrial buildings located in Cerritos, California, in the heart of the Los
Angeles County industrial market. The property is located at 13810 – 13950 Cerritos Corporate Drive,
Cerritos, California and is currently 97% leased to eleven (11) tenants. This acquisition brings The
Abbey Company's owned and managed portfolio to fifty-five (55) commercial properties throughout
California, containing approximately 6,100,000 square feet.
This noteworthy acquisition is one of the largest industrial real estate purchases on record in Los
Angeles County for 2009. This institutional quality property significantly enhances The Abbey
Company's presence in Southern California and serves to further demonstrate The Abbey Company's
ongoing commitment to growth of its portfolio and fortifies its ongoing market penetration strategy.
The Seller was an institutional owner that privately marketed the property to a select list of prospective
buyers. After a brief due diligence period The Abbey Company completed this purchase on an "all cash"
basis without debt financing. Completing this transaction within the Seller's limited closing
timeframe is testimony to The Abbey Company's financial ability and underwriting knowledge resulting
from having owned, operated, and leased commercial projects in the area since 1990.
Kurt Kaufman, Director of Acquisitions at The Abbey Company, handled the acquisition process for
the buyer. Kurt stated 'Our well-seasoned Acquisitions Team constantly scours the market to locate
and acquire "best of class" opportunities like this particular property investment. Industrial properties in
the mid-county area historically exhibit high occupancy rates due to its close proximity to the ports,
freeway systems and rail arteries. Buying into Southern California's industrial market, which is the
largest and most attractive in the United States, shows our belief in the long-term performance of welllocated
in-fill commercial and industrial real estate.'
In commenting on why The Abbey Company was selected by the institutional seller, Mr. Kaufman
noted that 'Our ability to close quickly without a financing contingency, and our in-house management
and leasing capabilities, gave us a competitive advantage in today's commercial real estate
environment.' He additionally noted that this acquisition is an example of the type of product Abbey's
acquisition program targets as the firm retains the ability to acquire substantially more assets on an
"all-cash" basis. The company seeks to acquire well-located office, industrial, and retail properties
Auburn CA, June 10, 2009: The Abbey Company announced the closing of the sale of a 60,000 square foot freestanding flex building at the Auburn Airport Business Park to Miltenyi Biotec, a company headquartered in Germany that specializes in cell biology, immunology, regenerative medicine, and molecular biology. While discussing the recent transaction, Kurt Hysen, the Northern California / Sacramento Regional Asset Manager for The Abbey Company, commented, "We are pleased to welcome a highly respected member of the biotech industry to the Auburn Airport Business Park. The park's employee friendly design, existing infrastructure, and the recent renovation of the business park by The Abbey Company played an integral role in Miltenyi Biotec's selection process."
The Auburn Airport Business Park is ideally located northeast of Sacramento between Interstate 80 and State Highway 50 in the City of Auburn. Situated in the middle of California's historic gold country, and surrounded by the scenic Sierra Nevada Mountains, the business park consists of four freestanding flex/tech/R&D buildings comprising a total of 260,000 square feet. With the sale of 2303 Lindbergh Street to Miltenyi, there are currently three buildings available for sale or lease. When asked about the opportunities at the park, Zack Cheney, the Leasing Manager for The Abbey Company said "This business park presents a unique opportunity for larger companies to benefit from exceptional facilities at economic terms substantially better than available in the Silicon Valley and Bay Area, while employees benefit from the improved lifestyle and serenity of the Sierras."
The Abbey Company is a real estate investment and management company, with headquarters in Long Beach, CA, that acquires and operates multi-tenant office, industrial, and retail properties. The company has a portfolio of 5.5 million square feet of commercial property that it owns and manages in Southern California, with regional offices in Los Angeles, Orange, Riverside, San Bernardino, and San Diego Counties, and in Northern California with a regional office in Sacramento.
Long Beach, CA, June 2, 2009: The Abbey Company is pleased to announce its latest commercial property portfolio addition with the purchase of City Parkway. Acquired from Maguire Properties, it is one of the largest real estate purchases on record in Orange County since September 2008. This central Orange County office complex enhances The Abbey Company's holdings, which now consists of eight properties in Orange County including the addition of City Parkway. The three-building, 460,000 square foot City Parkway Office Complex consists of twin 10-story glass office buildings and a four–story office building in an attractive office campus located at 500-600 City Parkway West, Orange, California.
The Abbey Company completed the “all-cash” purchase after a short due diligence period during which time Abbey also completed the purchase of the property's underlying mortgage loan from the property lender. Abbey was able to complete the quick-close transaction due to its local market knowledge, having owned the adjacent Cityview Plaza office property since 1993. Also, Thomas Clarke, The Abbey Management Company's EVP and chief operating officer, had a prior involvement with the property while he worked for previous owners Spieker Properties and Equity Office Properties.
In discussing this newest acquisition, Tom Clarke comments, ‘…our business plan is to establish an on-site management and leasing office, aggressively market the property to prospective tenants, and implement operating efficiencies at the property consistent with The Abbey Company's “hands-on” operations / leasing strategy'. Abbey has established a substantial budget for capital improvements and leasing expenses for the property, including Class A tenant improvements and tenant broker incentives, to make the property appealing to major tenants in the market. This very strategy is what has made The Abbey Company an emerging leader in the California real estate market.
Kurt Kaufman, Director of Acquisitions at The Abbey Company states ‘we believe this was the appropriate time to acquire an asset like City Parkway, which prior to mid-2008 had historically exhibited high occupancy rates due to it's ideal central Orange County location, at a price substantially below replacement cost due to the current real estate market disruption. Our ability to close quickly and without a financing contingency gives us a significant competitive advantage in today's commercial real estate environment'. Mr. Kaufman additionally noted that this acquisition is the opening salvo of Abbey's acquisition program over the next two years as the firm retains the ability to acquire substantially more assets throughout California on an “all-cash” basis.
Long Beach Fire Department Relocates Headquarters
Published by the Long Beach Business Journal May 13 - 26, 2008
Long Beach CA, May 26, 2009: After 15 years in the Port of Long Beach, the long Beach Fire Department recently relocated its headquarters to 3205 Lakewood Blvd. in a shared facility with the Long Beach Police Department. The Landlord, The Abbey Co., completed capital improvements prior to the fire department's move.
The fire department occupies approximately 29,000 square feet, including substantial warehouse space for fire trucks, apparatus and hazardous materials equipment, as well as vehicles for the L.A. County Department of the Coroner and the Bureau of Alcohol, Tobacco and Firearms.
"We've been able to purchase millions of dollars worth of apparatus and equipment through the grant process," said Fire Chief Dave Ellis. "It's much more usable space her. In addition, we've got a good-size training room downstairs that we can use for both police and fire, and [also] hold training classes."
The administrative staff includes Ellis, the fire prevention division and payroll and human resource personnel.
"I think it's a great opportunity for us," Ellis added, noting that centralizing two public safety departments lowers operational costs and benefits the community. "The blended rate for the cost
of square footage of office space either in Downtown Long Beach or even in the airport's Kilroy Center, it's quite a bit higher. This has really been a great value to the city."
The Abbey Company Celebrates Milestone
A picture perfect Palm Springs day greeted City officials and special guests at the Groundbreaking Ceremony for The Abbey Company's first ground-up construction project of 2008 at 265 North El Cielo. Simultaneous to the Groundbreaking, Mark Wittcoff, Vice President, announced another major milestone: The Abbey Company's portfolio has topped one billion dollars in value.
"The Abbey Company's roots are in places like Palm Springs where Don Abbey's leadership inspires our local management and leasing professionals to be active participants in their communities. This local focus is intergral to the growth of our portfolio," explained Wittcoff. "Breaking ground on this new building is an expression of our confidence in Palm Springs."
The Honorable David H. Ready, City Manager of Palm Springs, spoke on behalf of the City in congratulating the Company and its founder, Don Abbey, who purchased one of his first buildings in Palm Springs in 1992 and personally managed that building himself.
Suzann Brent, newly appointed Regional Leasing Director for The Abbey Company, opened the festivities and led the Groundbreaking events. Palm Springs Chamber of Commerce CEO John Pivinski and President Roman Whittaker held a ribbon cutting ceremony complete with giant scissors. Palm Springs Director of Community and Economic Development John S. Raymond and new Executive Director of Palm Springs International Airport Tom Nolan joined in the Ceremony. After the Ceremony, guests were treated to a catered lunch under a white canopy.
The new building is ideally located close to the Airport and completes the original 3-building design of architect Francisco Urrutia. Existing Abbey buildings at 255 and 275 El Cielo house prestigious tenants such as Desert Oasis Healthcare, the largest independent practice association in the Coachella Valley. Kay Etsell, Vice President-Operations, and other representatives of Desert Oasis attended the Groundbreaking. The Abbey Company owns additional Palm Springs office buildings at 340, 400 and 490 Farrell Drive.
With the new building on El Cielo, The Abbey Company has grown from its first property, purchased in 1990, to 55 commercial projects encompassing hundreds of buildings throughout California. In just 17 years, Don Abbey has taken his portfolio from $150,000 to over one billion dollars in value, encompassing over 5 million square feet and housing approximately 1,200 tenants.
The Abbey Company Breaks Ground in Palm Springs
Palm Springs Groundbreaking Kicks Off a New Era for CA Developer
Palm Springs, CA, November 21, 2007: When the shovel hits the dirt at 265 North El Cielo in Palm Springs on November 29th, The Abbey Company hits milestones: breaking ground on their first ground-up construction office building in
Palm Springs; and announcing gross commercial asset value of over one billion dollars in California.
"We're in this uniquely positive position today," said Don Abbey, founder and CEO. "Despite market trends in the other direction, The Abbey Company is expanding our portfolio and growing our business at a very ambitious pace.
We targeted Palm Springs for our first 2008 ground-up project because we believe in the market."
The new building already enjoys an interesting history. In the 70's, three office buildings were envisioned by Palm Springs architect Frank Urrutia, to grace a prime piece of land directly across from Palm Springs International Airport. Two of those buildings were completed, at 255 and 275 North El Cielo. The third site remained a vacant lot.
Traditionally known as a renovator, The Abbey Company purchased the two buildings and the lot and gave Urrutia the opportunity to fulfill his orginal vision as the architect for the ground-up construction of building three.
265 North El Cielo is now available for lease, with a target for completing construction by late 2008. The two existing Abbey buildings on El Cielo house professional and medical tenants such as Desert Oasis Healthcare, the first full-service medical facility and largest independent practice association in the Coachella Valley.
With six buildings in Palm Springs, including 340, 400 and 490 Farrell Drive, and 53 commercial properties statewide, encompassing over 5 million square feet and housing approxiamately 1,200 tenants, Don Abbey's management philosophy has proven successful. Since the purchase of his first building for $150,000 seventeen years ago, each Abbey building has been managed by local property and leasing managers who provide on-site services that tenants appreciate. The Company controls all facets of its business, from acquisitions to landscaping to financial management and construction.
Challenge For Children
Newport Beach, CA, September 14, 2007: The Abbey Company participated in the annual Challenge for Children Fundraiser on September 14, 2007 in Newport Beach, CA. We joined 48 other companies in the local commercial real estate community in raising over $500,000 to promote healthy development and school readiness for children ages 1-6.
BOMA San Diego Awards Five RPA & FMA's
BOMA San Diego Education Chair Jill Saul and Board Liaison Lisa Gualco recognized five deserving BOMA members at the June Membership Meeting for achieving their Real Property Administration (RPA) or Facilities Management Administrator (FMA) designation in 2006. RPA and FMA designations are marks of expertise and distinction in the commercial real estate industry and are awarded through the BOMI institute after the completion of set coursework and examinations. Deborah Hejko received her RPA and FMA and Melody Melara, Michael Nelson, Bobbie Nickless-Purcell and Gina St. Aubin received their RPA designation.
The Abbey Company Leases the Long Beach Hangar
Published by Long Beach Business Journal June 5-18, 2007
Long Beach, CA, June 18, 2007: Pictured, left to right, are Long Beach Police Department LT. Wayne Collins, Senior Abbey Leasing Manager Mark Hereford and Deputy Fire Chief Jeff Reeb stand in front of the building that the City of Long Beach recently leased from The Abbey Company. The structure is located on Long Beach Airport property at 3205 Lakewood Blvd. Later this year, the Long Beach Fire Department will relocate its headquarter from the port administration building to the airport facility, and the police department's field support division will move there as well. Lease negotiations for the
100,000 plus square-foot, two-storybuilding, hangar and warehouse space began late last year, as first reported by the Business Journal. The city will pay Abbey an initial base rent of about $128,000 per month during the 30-year, four-month term of the lease. When the lease expires, the city will own the building. Two of the attractions for the fire department are that its headquaters will be in the center of the city and near the emergency operations center on Redondo Avenue and Spring Steet. (Photograph by the Business Journal's Thomas McConville)
The Abbey Company Buys Six-Property Portfolio in San Diego
San Diego, CA, January 1, 2007: The Abbey Company finished 2006 with a major purchase in San Diego County, adding nearly a half million square feet and 65 new tenants to the real estate owner / operator's portfolio.
Abbey-Properties III Fund Number One LLC, through its newly-formed wholly-owned subsidiary, Abbey III - San Diego LLC, has acquired the San Diego Office / Flex Portfolio, made up of six properties totaling 447,311 square feet. Abbey purchased the portfolio from RREEF America REIT for a total purchase price of approximately $69.5 million. Bank of America financed the acquisition, taking a mere thirty days to complete the complex financing from purchase contract to closing. The acquisition represents the company's largest purchase transaction in the company's history.
The San Diego Office / Flex Portfolio consists of 18 buildings, made up of 77% office and 23% warehouse space in six different complexes. The portfolio includes:
Trade Center, the portfolio's largest property is a three-building office / industrial business park totaling nearly 121,000 square feet;
Pacific Center, a two-building, 99,381-square-foot property which serves as headquarters to mobile communications firm LEAP Wireless;
Kearney Mesa Corporate Center, a four-building complex totaling 86,050 square feet;
Excelencia Business Park, a 64,293-square-foot office and industrial center with three individual buildings;
Kearney Mesa Executive Park, a five-building office property totaling 47,648 square feet;
Torrey, a 29,007-square-foot, single-building office / industrial property.
The thriving portfolio currently has a 92% occupancy rate. In addition to LEAP Wireless, which occupies the entire Pacific Center development, other anchor tenants include telecommunications firm SBC Services, which leases 64,500 square feet at Trade Center; and satellite systems technology manufacturer Radyne Comstream, which occupies a total of 26,304 square feet, also at Trade Center.
According to The Abbey Company Chief Investment Officer Mike Jenkins, this group of assets was a natural fit for the firm in terms of size, location, and manageability. The properties are located in the Kearney Mesa and Sorrento Valley areas of San Diego, with easy access to I-15, I-5, and I-805, and are perfectly situated for users that are looking for San Diego County office / distribution space.
"These are classic Class B properties that are extremely well located, have been reasonably well maintained by the former institutional owner, and were performing nicely already, but where we think overall performance can be enhanced with respect to both market rents and occupancy levels," according to Jenkins.
As with all of its holdings, The Abbey Company plans to be hands-on in both its property management and leasing of the properties. The company has dedicated a $3 million capital expenditure and leasing budget to this portfolio, which it will use for property upgrades, including the repaving of parking lots, lobby and corridor improvements, and landscaping enhancements. Jenkins said most of the properties are in excellent shape structurally, but the firm will upgrade HVAC systems and replace roofs where needed.
"Every time we evaluate a building purchase, we ask, 'How can we enhance value?'" Jenkins added. "We start with an evaluation of the physical and functional components of a property that affect its performance. Are there things the current owner hasn't really paid attention to or noticed for the past few years? And we'll make the necessary cost-effective improvements."
To keep up with its expanding activities in San Diego, the company has hired Deborah Hejko as Regional Asset Manager - San Diego. Prior to joining Abbey, Hejko managed 2.1 million square feet of commercial property as an Asset Manager at Kilroy Realty Corporation. She has worked in property management in the San Diego and Orange County markets for nearly two decades. The San Diego Office / Flex Portfolio will be managed by Abbey Pacific Services, Inc, an Abbey Company subsidiary.
The Abbey Company's existing San Diego County properties include Fletcher Parkway, an 82,000-square-foot, three-story office and medical property in La Mesa; and Rancho Carmel, a three-building, multi-tenant complex in San Diego's upscale Carmel Mountain neighborhood.
"San Diego is a tough market to enter because it's a tight market with a lot of demand and a very low vacancy factor," said Jim Antonio, VP of Investments for The Abbey Company. "This new portfolio was especially attractive because it covers a good portion of the county and offers flexibility to San Diego tenants across a wide array of industries."
The market's strong rental rents also added to the appeal of the purchase for Abbey.
"We increase rents in combination with delivering a better product. We want to increase the value of the properties by making improvements that enhance their appeal to our target tenants and by dealing with some of the issues that may have kept the rental rates from increasing at these properties before," according to Jenkins. "We expect to get higher rental rates as long as we deliver a higher-end product."
The San Diego Office / Flex Portfolio acquisition is the fourth purchase completed by Abbey-Properties III Fund Number One since April 2006. Acquisitions made last year include Gateway / Lake Forest Building, Brea Corporate Plaza / Park Centre, Landmark Building / Sacramento, and the San Diego Office / Flex Portfolio. The 2006 purchases encompass a total of 979,805 square feet with 167 tenants, and a market value of more than $200 million.
Abbey Breaks into Northern California with Landmark Purchase in Sacramento
Sacramento, CA, October 2006: Making its debut in the Northern California commercial real estate market, The Abbey Company has purchased The Landmark office building in Sacramento.
The six-story Class A property is more than 90% leased and includes 185,859 rentable square feet situated on 10.59 acres. Located at 1750 Howe Avenue, the Landmark is one of the most recognizable buildings in all of Sacramento with distinct architecture, one-of-a-kind floor plates and a prime corner location. The building has won numerous design awards and features a unique triangular design with a striking black glass and ceramic tile facade.
The diverse Sacramento office market caters to a tenant base from a mix of industries including healthcare, financial services, legal, government, and education. Landmark's anchor tenants include Liberty Mutual, which occupies 35% of the building, Bank of Sacramento, CBS Radio, and Landmark Healthcare.
"We've been looking to acquire a well located, strong performing asset in Northern California for some time and The Landmark Building is a perfect fit," said Jim Antonio, VP of Investments for The Abbey Company, who noted that nearly half of the building is leased through 2012 and that Landmark is located In Sacramento's premiere Point West office submarket.
Thanks to a lack of developable land, low vacancy rates, and little new product, Landmark's Sacramento location gives the property a competitive advantage. Additionally, the property is located across the street from the Howe 'Bout Arden Center, anchored by Nordstrom Rack as well as a number of dining establishments. Three blocks west, the Arden Fair Mall provides the added convenience of even more retail and dining options for Landmark tenants.
"We're hoping to build on the momentum of the Landmark acquisition," said Abbey's Chief Investment Officer Michael Jenkins. "We plan to expand our presence in Northern California in the years to come."
Abbey Enters into Strong Brea Market
Brea, CA, June 2006: The Abbey Company has expanded its Orange County presence with the acquisition of two business parks in Brea totaling nearly 288,000 square feet.
The larger property, Brea Park Centre, consists of 168,890 square feet of office space spread out over three three-story buildings that sit near the major intersection of Kraemer Boulevard and East Imperial Highway. The second property, the three-story Brea Corporate Plaza on East Imperial, totals 118,818 square feet. Both projects are approximately 86% occupied.
"This Class B value-add portfolio of office buildings is a perfect fit for The Abbey Company," said Jim Antonio, VP of Investments. "It's a great opportunity for us to enter the extremely tight North Orange County market with two historically strong performing projects."
The Abbey Company Chief Investment Officer Michael Jenkins oversaw the acquisition with Antonio. They were assisted by company Due Diligence Coordinator Jim Antonio.
Both properties have a diverse mix of tenants including government entities, financial services firms, and anchor tenants like New York Life Insurance and GE. Suites range in size from 1,000 square feet to 20,000 square feet to meet the needs of a variety of businesses.
The Abbey Company will invest $1.5 million in the new properties and look to its in-house asset management team to oversee and carry out the improvements and upgrades to the projects, according to Antonio. The company will also focus on leasing up current vacancies as well as bringing in-place rents to current market value upon lease expiration.
Brea, with a population of 40,000, was recently named to Sunset Magazine's list of "Best Places To Live." That number is only going to grow when the proposed 119-acre residential development, La Floresta Village, also along East Imperial Highway, is completed over the next few years.
"The City of Brea has undergone tremendous growth over the past ten years with the redevelopment of the Birch Street Promenade, a retail, dining and entertainment district, and the continued success of the Brea Mall," said Antonio. "It's a great community to work, live and play."
Additional assets in The Abbey Company's Orange County portfolio include the Anaheim Stadium Park, Aliso Viejo Commerce Center, and Cityview Office Plaza in Garden Grove.
The buyer and seller were assisted by Michael Kane and Bob Smith of CB Richard Ellis' Newport Beach office.
The Abbey Company Forms Joint Venture
Real estate owner and operator The Abbey Company has announced the formation of a joint venture with partner Capri Capital Advisors, a real estate advisory firm. The two organizations have created Abbey - Properties III Fund Number One, LLC which plans to acquire $250 million in real estate over the next 18 months.
"Capri Capital has selected The Abbey Company to be its exclusive real estate partner in Southern California. We have a history with Capri and a long-standing relationship with the senior management there," said Mike Jenkins, Chief Investment Officer with The Abbey Company. "We've gotten to know them and they've gotten to know our company, our portfolio and our management style."
Since its founding in 1990 by real estate veteran Donald G. Abbey, The Abbey Company's core focus has been to invest in the lucrative retail, industrial, office and multi-use real estate markets throughout Southern California, yet this partnership and access to institutional capital will enable the firm to expand into new markets if it comes across the right opportunity.
"Most likely we'll invest in one or two outside markets before we're done with Fund Number One, possibly in Northern California or the Central Valley or as far north as Portland, Oregon," Jenkins added. "The scale of this venture is perfectly suited for us. We're working with people we know. Capri shares our view of creating value through Southern California and ultimately the entire West Coast. It's a great marriage and a great opportunity."
The fund has already made its first acquisition: two business parks in the North Orange County market of Brea totaling nearly 288,000 square feet. The larger property, Brea Park Centre, consists of 168,890 square feet of office space spread out over three three-story buildings that sit near the major intersection of Kraemer Boulevard and East Imperial Highway. The second property, the three-story Brea Corporate Plaza on East Imperial, totals 118,818 square feet. Both properties are approximately 86% occupied.
The Gateway Project in Lake Forest, CA, has also become asset in the fund's portfolio. The one-story, 58,760 square-foot office building, located at 26211 Enterprise Way, includes 12,000 square feet of mezzanine space. Panasonic Avionics Corporation currently occupies the entire building and has a long-term lease in place.
"We tend to have a higher tenant retention rate than a lot of other commercial real estate operators and Capri knows that. We bring in-house expertise to the table that's hard to find," said Jenkins. "The key to our success lies in our on-site staff that deals with property management, leasing, construction management and tenant improvements. We control and manage our costs that way and it equates to a substantial savings."
Abbey - Properties III Fund Number One, LLC plans to average about one to two deals per quarter over the upcoming year and a half.
Airport One 100% Leased in Ten-Year Deal
The Abbey Company said it has leased all 88,284 square feet of space at Airport One, a three-story office property in Long Beach, to a financial services firm. The tenant has signed a 10-year lease.
"Airport One's location is especially attractive," said Abbey senior leasing agent Mark Hereford. "The tenant really liked the proximity to the Long Beach Airport and the access to the 405 Freeway."
Long Beach is also halfway between the lessee's other offices in downtown Los Angeles and Irvine, he said. Airport One's on-site, four-story parking garage also gives the building an unusually high parking ratio of 4.8 spaces per every 1,000 square feet.
The Abbey Company recently upgraded Airport One after former tenant Boeing vacated the building when it downsized the division that had been located there.
"We landscaped, resurfaced the parking lot and remodeled the lobby which included adding new granite floors," said Joel Glass, The Abbey Company's Marketing Director.
Because of the large amount of space the new tenant will be occupying, the lessee plans to make additional improvements to the building, fit to its own specifications.