In Huntington Beach, CA, an unconventional property became one of the more creative value-add commercial real estate investments in Orange County.
A commercial real estate lender approached our team after a pre-approved client,an escrow company,had spent months searching for suitable Orange County office space without success. The client needed a building that could accommodate their operations, but the limited inventory of commercial real estate for sale in Orange County made the search difficult.
After evaluating multiple traditional office buildings throughout the region, we identified a unique opportunity in Huntington Beach: a vacant mortuary building with the structural characteristics necessary to convert into functional office space.
The property carried a title restriction prohibiting future mortuary use, which opened the door for a different type of occupancy. That restriction ultimately allowed our client to pursue a redevelopment strategy and reposition the building as professional office space within the Orange County commercial real estate market.
Once the property entered escrow, the project required extensive evaluation to determine the capital improvements needed to transform the structure into a fully functional office environment. The interior still contained built-in mortuary pews, and the building featured an exterior staircase leading to a small second-floor apartment,elements that made the conversion both challenging and intriguing from a value-add investment property perspective.
Working closely with the buyer, we developed a renovation plan that included removing the original mortuary infrastructure and converting the upstairs apartment into additional office suites. The improvements ultimately repositioned the building as a modern workspace suitable for professional services in the competitive Orange County commercial real estate landscape.
Just over a year after the conversion was completed, comparable sales suggested the property’s market value had increased approximately 30–35% above the original purchase price plus renovation costs, demonstrating the upside potential of well-executed value-add commercial real estate investments in Orange County.
An additional benefit emerged through zoning flexibility. The property can now accommodate medical, retail, or office uses, providing the owner with multiple future exit strategies,an important factor for investors evaluating Orange County investment property opportunities.
What began as an unconventional search ultimately became a successful repositioning story, transforming a former mortuary into a thriving Huntington Beach office building and illustrating how creative thinking can unlock hidden opportunities in the Orange County commercial real estate market.
