GPR Ventures' playbook of buying slightly faded office properties and sprucing them up is paying dividends.
After more than $3 million in improvements and additions to an eight-building property in Gold River, GPR recently saw occupancy there go over 80%. That's double what the 140,000-square-foot property at 11344 Coloma Road had three years ago, when GPR bought it for $8.62 million.
"Great management, great leasing, we've gotten it back on everyone's radar," said Phil Rolla, a co-managing principal at Campbell-based GPR Ventures. Initial improvements included new exterior paint, new suite front doors, landscaping and benches.
In the last year, the company added a recreational lounge with a TV, coffee and Wi-Fi access and updated the fitness center with new equipment and a refurbished locker room. Beginning in February, a closed bakery space will be backfilled with Martin's Tacos, a former taco truck popular at company events that will sign a five-year lease.
"The project has a lot of amenities it didn't have before," said Glen Yonekura, GPR's other co-managing principal.
Whether prompted by those added amenities or an overall tight market for office space, the 140,000-square-foot property got six new leases last month, for more than 15,000 square feet. New tenants include environmental tech services firm eScreenLogic, in about 9,100 square feet, and Stanton Engineering, in 4,224 square feet. Cushman & Wakefield is handling leasing for the property.
Kristie Kuechler, GPR's head of asset management, said the company has also gotten results on another recent acquisition, 3900 Lennane Drive in North Natomas. After buying that 45,000-square-foot building earlier this year for $4.235 million and giving it a complete renovation, GPR Ventures has seen 10,000 square feet of new leases there, boosting occupancy for 50% at time of purchase.
"To see that building now, it's like night and day," Kuechler said.Download PDF