Redwood West is bringing the first ground-up for-sale office development in 28 years to the Newport Beach market. VUE Newport, as the project is called, will provide the opportunity for companies to own condominium office spaces on the Balboa Peninsula in Newport harbor. The condominiums will range in size from 680 square feet to 6,400 square feet. In addition, the project will also include retail and restaurant space, 27 residential units and access to the boat dock, which together will create the live-work-play environment that so many office users are looking for in a for-sale package.
“As a boutique real estate firm that specializes in tenant representation, leasing, and investment sales, we have had the fortune of handling the majority of the commercial leasing, sales and asset management transactions in coastal Newport Beach—from Mariners Mile and Lido Village to Cannery Village and Balboa Peninsula—since 2004,” Ben Gott, co-founder of Redwood West, tells GlobeSt.com. “For VUE Newport, we envision a vibrant community of successful businesses, and business owners, that value the coastal work/live/play lifestyle in Newport Beach and are thrilled to own and occupy these one-of-a-kind waterfront commercial condominiums. The developer, Third Palm Capital, successfully built VUE Newport to be a truly unique, state of the art, mixed-use property along Newport Harbor.”
Although this is the first for-sale project to break ground in 28 years, there is tremendous demand for office users to own their own office space. In this area of Newport Beach, that is a rare opportunity due to the high cost. “The recent and current market is quite robust. The economy is relatively healthy and local businesses are generally thriving,” says Gott. “The opportunity to own property along the water is most often prohibitive for business owners due to the sheer size and aggregate cost involved. Unlike other coastal properties, VUE Newport offers units that are as small as 680 square feet, allowing a small business owner or investor to buy and occupy. The costs are manageable, and the upside is vast. Further, the tax benefits of ownership are also quite healthy along with what we believe will be long-term appreciation along the water for this product type.”
Despite the demand, the limited availability of developable land has prohibited construction of for-sale product. “Obviously coastal developments, of any kind, are limited due to the fact that there is limited coastline,” explains Gott. “Developing along the water can be challenging due to coastal construction factors and other barriers to entry. While there is plenty of waterfront residential development in Newport Beach, commercial development has been historically limited. We worked closely with the Newport Beach community and city, over the years, to revitalize commercial coastal development. Most of the waterline in Newport is already developed, so true ground-up development means a healthy investment in scrapping an existing building, undergoing the necessary dredging and development to accommodate a stable coastal structure, among other things. Hence, this is a remarkable opportunity that is not likely to be recreated.”