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Seagate Completes Sell-Off of Serramonte Plaza Assets

DALY CITY, CA-The San Rafael, CA-based company purchased the 16-piece property in February 2002 for approximately $31.6 million. The three land parcels, five office buildings and eight retail spaces were sold off individually over the course of three years for combined proceeds of approximately $40 million.

By Brian K. Miller | Updated on October 28, 2004

DALY CITY, CA-Seagate Properties Inc. recently concluded its sell-off of the 16-piece Serramonte Plaza portfolio here that it acquired in February 2002 in association with Buchanan Urban Investors as advisors to CalPERS. The San Rafael, CA-based company paid approximately $31.6 million for three land parcels, five office buildings and eight retail spaces along Gellert Boulevard, then retained Gary Willard of BT Commercial and Chris Kostanecki of Marcus & Millichap to sell off the assets individually. The land and retail properties were sold in late 2002. Three of the office buildings were sold in 2003 and the remaining two were sold in 2004. With the recent sale of the largest of the office buildings–a 63,000-sf two-story property at 333 Gellert Blvd.–the sell-off has been completed. The re-sale of the assets generated approximately $40 million in gross proceeds, according to Seagate.Seagate principal Wick Polite says the strategy going in was to bulk-purchase the portfolio and arbitrage cap rates by dividing it into individual office, retail and land parcels. “The strength and depth of the smaller individual investor as well as the 1031 tax-deferred exchange buyer, has allowed us to efficiently implement this strategy over a period of two years and eight months,” he says.

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