The 15-story class A building was acquired from Pacific Coast Capital Partners and Lincoln Property Co. of Dallas, which three years ago paid TrizecHahn Corp. of Canada $53 million for the 17-year-old property. At that time, Lincoln had plans to complete a twin office tower next door that TrizecHahn had been planning. Under current zoning, Rreef could add 600,000 sf of office to the property it acquired.
The sale to Rreef was brokered by Kevin Van Voorhis, Colliers International; George Eckard, Cushman & Wakefield, and; Breck Lutz, Cornish & Carey Commercial. Van Voorhis tells GlobeSt.com that the acquisition included the assumption of debt from MetLife that carried an over-market rate and could not be refinanced.
According to Colliers' second quarter market report, Concord currently has a 6% vacancy rate in class A office product, down slightly from the 6.1% at the end of 2002. Van Voorhis says one of the key reasons companies like PacifiCare and Bank of America would chose One Concord Center is that employees can take BART from East County and have a quick commute.
"Rreef saw a stable asset that had attracted a number of credit tenants and the opportunity to develop newer, more modern towers next to a BART station," says Voorhis. "Such opportunities are few and far between."
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