In late May 2024, BH Properties acquired Pacific Place, a 2.08-acre, 335,000-square-foot upscale entertainment and shopping center in the heart of downtown Seattle. At the time of the acquisition, the mall’s occupancy stood at roughly 45 percent. BH Properties’ strategy has been to attract local, regional, and national retailers to deliver a first-class shopping experience with a uniquely Seattle flavor.
BH Properties
Every commercial real estate cycle presents a unique opportunity to drive innovation and refine investment strategy. That’s among the takeaways from Urban Land’s interview with industry vet Jim Brooks, president of Los Angeles–based BH Properties. Brooks brings deep experience in navigating cycles and unlocking value, with a resume that includes The Koll Company, Morgan Stanley, Tishman Speyer, and Columbia’s real estate Master’s degree program.
BH Properties boasts a portfolio of 11 million square feet of owned and managed properties across 16 states, and is primarily recognized for its value-add investment approach including all major product types including a recent push into affordable housing. Under Brooks’ leadership in 2024, the company acquired several notable office properties, including the 405,000-square-foot mixed-use Hazard Center in San Diego’s Mission Valley, the 335,000-square-foot Pacific Place shopping center in downtown Seattle, the historic 117,000-square-foot 989 Market St. office building in downtown San Francisco, and the 225,000 square-foot ‘Synopsis’ office campus in Hillsboro Oregon. In just the first few months of 2025, the company has acquired two high profile office acquisitions in Texas; Plano and Austin. The firm plans to reposition these assets strategically to maximize their potential in the market.
To gain deeper insights into his approach and the shifting landscape of commercial real estate, we spoke with Brooks about the current trends and the future of BH Properties. Here’s what he had to say:
Urban Land: Jim, the office sector is going through major disruption. How is BH Properties responding to the shift in demand due to remote and hybrid work?
Jim Brooks: The traditional office model is being redefined—and we’ve embraced that. Rather than waiting for demand to return to pre-pandemic levels—which, after nearly five years from [Covid’s] outset may not [return] as we once knew it—we’re asking, “What are the characteristics that provide the best possible investment outcomes today?” Our investment model of acquiring well-amenitized buildings with a reset-in basis provides a competitive advantage when leasing space. For some, it’s about repositioning with the right amenities for hybrid users. We’re not sentimental about use; we’re focused on value and utility. If an office asset can be repurposed, we’ll make that pivot.
UL: Are there specific characteristics you look for in properties that are candidates for repositioning?
Brooks: Absolutely. We evaluate location, access to infrastructure, zoning flexibility, and the physical configuration of the building. Reuse and repurposing are always vetted in discussing any acquisition to determine highest and best use. Some assets just aren’t fit for office anymore—but they might work as flex space, small bay industrial, or retail. Others still have potential in office, especially if we invest in modernizing the experience for tenants: upgraded HVAC, outdoor space, more flexible layouts, the addition of amenities. The key is to stay realistic about demand and lean into what the market needs.
UL: Is this shift in your office strategy a permanent change or a reaction to short-term market dynamics?
Brooks: One of our advantages is our product-agnostic approach to investing and not a product-specific approach, which allows us to react to changes in the economy and demand. The current market is providing opportunities in Class-A office, where we can acquire [property] below replacement cost with a reset in basis. We have been active buyers over the last couple of years. When the pandemic broke out in 2020, we turned our attention to a depressed retail environment, [a move that] worked out well. Our strategy is driven by basis, and office is no exception.
BH Properties in late April acquired of The Park on Barton Creek, a Class-A, 205,293-square-foot office complex situated at the intersection of South MoPac and Loop 360 in Southwest Austin. The institutional quality property recently underwent a $1.3 million capital improvement program that enhanced the lobby experience and provided both a tenant lounge and conference center.
BH Properties
UL: BH has been active on the acquisition front. Can you talk about your office deals over the past year and the kinds of discounts you’re seeing?
Brooks: In the last 12 months, we’ve acquired several office assets at pricing that would have been unthinkable just a few years ago. We’re talking about 60 to 70 percent below replacement cost, in some cases. These are quality assets in strong submarkets . . . Hazard Center in San Diego, Pacific Place in Seattle, 989 Market Street in San Francisco, and, most recently, a Texas asset in Barton Creek that we closed on this week. In each of these deals, our focus was on acquiring assets at a compelling basis with upside through repositioning. The discounts reflect where the market is today, and while that makes headlines, we’re looking at what the assets can become with the right investment and execution.
UL: Once you’ve acquired these assets, how do you plan to reposition them to align with current market dynamics and tenant expectations?
Brooks: We’re laser-focused on creating environments that tenants actually want to work in today. That means prioritizing things like outdoor space, natural light, flexible layouts, and building amenities that support hybrid work—conference centers, wellness areas, even food and beverage components. It’s no longer about just four walls and an address. We start by listening to the brokerage community and end users, then align the improvements to that feedback. In some cases, we’re also exploring partial conversions or mixed-use integrations to enhance the asset’s relevance. It’s about maximizing utility, not just sticking to the old office playbook.
