DivcoWest continues adding to its Central Peninsula holdings in California with the purchase of 700-900 Concar Drive, a three-building, Class A office campus in San Mateo.
The acquisition price was not released by the San Francisco-based company but the Silicon Valley Business Journal reported it as $130.6 million. The newspaper also stated the seller was JP Morgan Asset Management.
The 210,000-square-foot property is fully leased by five tenants, including Salesforce and Japanese online retailer Rakuten. Completed in 2003, the campus attracts tenants because of its location near the Hayward Park Caltrain station as well as the San Mateo Bridge and major highways. It is also close to developments like the $300 million Station Park Green project with 600 apartments and 60,000 square feet of retail.
"This is a highly competitive asset in one of the Bay Area's strongest and most promising submarkets," Sam Hamilton, DivcoWest's head of West Coast acquisitions, said in a news release. "We believe that, like our other recent acquisitions in the market, it offers the advantage of strong, in-place current income from current tenants with the potential to attract additional major tenancies in the future due to a shrinking inventory and displacement experienced by other central Peninsula office users."
It is the third central Peninsula investment made within the last six months by DivcoWest. In October, the firm acquired two buildings with a total of 450,000 square feet at 1400-1500 Seaport Blvd. in the Pacific Shores Center in Redwood City, Calif. Two months later, it purchased Century Plaza, an 115,600-square-foot office building in Foster city, Calif.
The Redwood City purchase was one of the region's largest office acquisitions in the fourth quarter, according to Kidder Mathews 4th Quarter 2014 Peninsula Office real estate market review.
CBRE states the Central Peninsula office market has seen 16 consecutive quarters of rent growth and the supply of Class A multi-tenant office buildings in the overall market continues to shrink, increasing demand.
DivcoWest has also been disposing of office properties in recent months. In January it sold a Class A office complex in Austin, Texas, for $76 million, and three office buildings in Boston's Fort Point Channel submarket in the Seaport District for $105.6 million.