Moreover, as Bram mentioned, Randall likes how the property stacks up with the rest of the inventory. "We're the only opportunity above 40,000 sf," he says. "If someone wants 100,000 sf in the North [Interstate 680] Corridor, we're it or they are waiting for a build-to-suit."

The property's position in the market prompted the lender to be confident in the financing despite the fact that no interest had yet been shown in the property, Bram says. The lender offered to lend DJM 90% of the $29-million cost to acquire and renovate the asset for occupancy. Ultimately, DJM opted to combine 20% cash equity with an 80% loan that was priced in the mid-200s over Libor. The cost of the loan included a one-point origination fee and no exit fees, Bram says. The loan was initiated and closed in about 30 days.

In addition to being one of few large contiguous availabilities in a campus environment, Randall says the campus' location in Pleasant Hill puts it north of Walnut Creek, a classic pinch point for traffic. "Much of the employee base is north of us and for the executives down in Orinda, Lafayette and Alamo it would be a reverse commute," he says.

The total expected investment puts DJM's all-in cost at about $220 per sf, which compares to an estimated replacement cost of around $275 per sf. At the time of acquisition, local brokers estimated that DJM's total investment in the product needed to come in at or around $200 per sf in order for it to achieve a decent ROI. The full-service asking lease rate for the buildings is $27 per sf. Colliers International has the leasing assignment.