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Interland Sells Vacant Office Park for $86M

SAN MATEO, CA-Lowe Enterprises and O'Connor Capital Partners acquire a 270,000-sf, six-building campus overlooking San Francisco Bay as a value-add play.

By Brian K. Miller | Updated on June 11, 2007

SAN MATEO, CA-San Mateo Executive Park, a vacant 270,000-sf office campus here has changed hands for $86 million or $318 per sf. A partnership of Lowe Enterprises and O’Connor Capital Partners acquired the six-building park from Interland Cos. Neither company would confirm the sale price, which was provided to GlobeSt.com by a local source familiar with the transaction.

San Mateo Executive Park sits on 23 acres at the intersection of Highway 92 and West Hillsdale Boulevard, a hilltop site in northwest San Mateo that overlooks San Francisco Bay. The new owners plan to spend another $16 million modernizing the facility to class A standards and converting a data storage building to office space.

The six-building development was previously the regional headquarters for VISA, which relocated between 2002 and 2004 to new digs in Foster City. The property was tied up with a homebuilder for some time after VISA left but the would-be buyer could not attain the density it necessary to make the project pencil. When it came back to market, it attracted a couple of dozen office investors instead of condominium developers.

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