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Tishman Speyer Flips Concar Campus

SAN MATEO, CA-Tishman Speyer sells the former Siebel headquarters here for $100.5 million after acquiring it empty last year for $59.5 million.

By Brian K. Miller | Updated on August 27, 2007

SAN MATEO, CA-SAN MATEO, CA-A fund of JP Morgan Investment Management is the new owner of the former Siebel headquarters, a class A office campus here that includes two buildings totaling 217,000-sf (net rentable). The property is approximately 90% leased. The sale price was $100.5 million, according to industry sources.

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.

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