Located at the confluence of state highways 92 and 101, the 700-900 Concar Dr. buildings were constructed in 2002. Tishman acquired the building empty in June 2006 for $59.5 million and spent the past year stabilizing the asset. In 2005, when the building was still fully leased to Siebel, ING Clarion paid $155.5 million for the buildings. Salesforce now occupies one of the buildings and Sterling Commerce also is a tenant.
The profit on the flip by Tishman isn't as large as it seems, according to local industry sources. The cost to carry the vacant buildings, "fixturize" them, build out tenant's spaces and pay leasing commissions could have easily added up to $15 or $20 million. At $55 per sf, tenant improvements alone would have added up to $10 million.
Eastdil Secured sold the asset to Tishman and to JP Morgan. Jones Lang LaSalle has the property management assignment. Tishman Speyer declined to comment on the transaction.
Other recent Bay Area deals by JP Morgan Investment Management include a joint venture with Seagate Properties that earlier this month paid $90.2 million for acquiring San Rafael Corporate Center, a two-building, 157,723-sf office property in San Rafael with the potential for an additional 230,000 sf of development and the June acquisition of the 13-story Hilton Garden Inn San Francisco Bay Bridge for approximately $200,000 per key.
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