Search
 

Adjacent Class A Office Buildings Fetch $79M

BRISBANE, CA-Shorenstein Properties of San Francisco picks up two 20-year-old buildings that total 167,000 sf and are fully leased to Wal-Mart through 2012 as the headquarters for its online division.

By Brian K. Miller | Updated on December 21, 2005

BRISBANE, CA-Two adjacent class A office buildings here that are fully leased to Wal-Mart Stores Inc. have changed hands for $79 million or $472.55 per sf, local real estate sources tell GlobeSt.com. San Francisco-based private fund sponsor Shorenstein Properties LLC acquired the 167,000-sf package from Redwood City, CA-based Foster Enterprises.

The buildings are known by their addresses, 5000 and 7000 Marina Blvd. The property includes 473 surface parking spaces and is located within Sierra Point, a 102-acre master-planned commercial business park located adjacent to Highway 101 and surrounded on three sides by the San Francisco Bay.

The Wal-Mart lease runs through 2012. Wal-Mart keeps the headquarters for its online division in the buildings, but also subleases some of the space. Local industry sources tell GlobeSt.com that Wal-Mart leased the building at the top of the market, which would help explain the relatively high purchase price. One source says the rent may be enough for Shorenstein to get back the cash in the deal during Wal-Mart’s term, but that Shorenstein may seek to negotiate a blend-and-extend deal with Wal-Mart and then re-trade it after a few years.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.