As outlined below, within the last 30 days, Bay Area commercial real estate investment activity remains active, along with major development projects advancing in several Counties. Despite the “shelter in place” order due to COVID-19, strong interest in commercial real estate assets remains high among a variety of property types.
Technology News
Biotech company Kodiak Sciences expands into new headquarters, agreeing to just over 155,000 s.f. at 1200 & 1250 Page Mill Road in Palo Alto. Kodiak will occupy the buildings for the next 20 years for their R&D operations and office use.
Google’s massive 800,000 s.f. office development will be moving forward, with the condition that the company submits building permits within the next two years. This office building is part of the “Google Landings” project – a massive 1.2 million s.f. project that includes 10,000 s.f. of ground floor retail and a four-story parking garage.
Development News
The City of Mountain View approves residential project from developer Sares Regis. The project, called The Residences @ Shoreline Gateway, includes 303 apartment units and condos and 3,000 s.f. of retail space at 1001 N. Shoreline Blvd.
Bridge Development has broken ground on their industrial facility (534,000 s.f.) at 5441 International Blvd in Oakland. The demolition of existing buildings on the site will begin this year, with vertical construction scheduled to complete by Q4 2020.
Transaction News
CBRE Global Investors set to close on The Townsend Building in San Francisco for more than $140 million. The 137,000 s.f. office building, located at 123 Townsend St, had undergone a full renovation in 2000.
OSM Property LLC, an affiliate of Lakevision Capital LLC, a U.S. subsidiary of a major real estate company in China, acquired One South Market. This luxury apartment complex in downtown San Jose sold for $175 million, or $561,000 per unit. The 23-story high-rise contains units ranging from 600-1,400 s.f. in size.
CenterPoint Properties purchased 950 Whipple Road in Union City, expanding their footprint in the East Bay. The industrial property is located near major transportation lines, providing great access to the entire SF Bay Area.
A portfolio of six office and R&D properties in South San Jose were acquired by Kennedy Wilson, a Beverly Hills-based real estate investment company for $53.5 million. The properties were fully leased to 15 tenants at the time of the sale.
Sources
San Francisco Business Times, SF Registry, Silicon Valley Business Journal
Provided By
JOHN CHA
Director of Research
206.248.7338
john.cha@kidder.com
Written by Nicole O’Keefe
Kidder Mathews Research