One of the first full-scale office-to-industrial conversions has been completed in Orange County — a milestone for the growing trend in Southern California.
Developed by Kearny Real Estate Co. and Dune Real Estate Partners, the Harbor Logistics Center project transformed a 200,000-square-foot creative office campus in Santa Ana into a 162,656-square-foot logistics and research and development facility designed to meet surging demand for modern industrial space.
The project has earned a 2026 CoStar Impact Award for commercial redevelopment of the year, as judged by real estate professionals familiar with the market.
Kearny acquired the low-rise campus in 2018 in a separate partnership, with plans to revitalize the aging property into a creative office space. The firm added features including a fitness center, conference amenities and outdoor spaces to reposition the complex. But the pandemic abruptly derailed the suburban office recovery, and occupancy at the property had stalled at 62%.
By 2022, Kearny pivoted. As the demand for logistics and R&D space grew across Orange County, the team saw an opportunity to leverage the property's underlying industrial zoning and industrial surroundings.
Kearny worked with the city of Santa Ana to finalize the redevelopment design plan. By February 2023, Kearny had relocated tenants and recapitalized the project with Dune Real Estate. Over the next seven months, the team secured entitlements and permits for development and negotiated construction financing.
In February 2024, demolition began. Early grading revealed high groundwater conditions, prompting careful coordination between geotechnical and structural engineers. The team reused significant portions of the subterranean garage floor slab and installed a geofabric and gravel base system to mitigate water issues and stabilize the redevelopment.
The project was completed in February 2025, becoming the only 36-foot-clear building within an almost 4-mile radius.
In July 2025, Anduril Industries — a fast-growing defense technology firm — signed a seven-year lease to occupy the entire project. Known for its artificial intelligence, robotics and software-driven approach to defense innovation, Anduril maintains its headquarters less than a mile away, making Harbor Logistics Center a strategically located expansion as the company grows alongside major military partners nationwide.
About the project: Construction costs for the redevelopment totaled about $28 million. In all, the project took just over a year — demolition took three months, onsite and offsite work lasted 11 months, and final sign-offs took one month.
The project features 17 dock-high doors, ESFR sprinklers, LED lighting throughout, a 185-foot-deep truck court capable of trailer parking, and modern sustainable elements including rooftop solar and EV charging. With 4,000 amps of power and 241 parking stalls, the facility was designed to support a broad mix of industrial, manufacturing and R&D uses.
The property also sits in a prime location with access to three public streets just a mile from Interstate 405 — one of SoCal's most important trade corridors. With connections to I-5 and State Route 55, occupiers have same-day access to roughly 20 million residents and workers across Orange, Los Angeles and San Diego counties as well as the Inland Empire.
What the judges said: "Harbor Logistics Center is one of the few redevelopments from aging office to a state-of-the-art industrial logistics building which is a higher and better use. Many questioned whether the ownership's decision to demolish a B+ office project made sense and [the owners] were proven right," said Tom Abel, first vice president at CBRE.
"Harbor Logistics Center stood out for its successful conversion of an obsolete office campus into a modern industrial facility that now serves as critical infrastructure for regional logistics and economic growth," said Gary Martinez, senior vice president at Ashwill Associates.
They made it happen: The Kearny Real Estate team behind the development included Managing Partner Hoonie Kang, Vice President Dan Broder and Senior Project Manager Eric Dritley. Ben Morrison of Dune Real Estate Partners was also involved. Steve K. Hong of SKH Architect designed the logistics center. Millie and Severson served as the general contractor. The property manager is Mary Vivar of Kearny. The leasing brokers are Ben Seybold and Sean Ward, both of CBRE.