The purchase price was approximately $32 million, according to county records. The seller was Archon Group, a Texas-based real estate investor that had in-house representation. Gregg Walker and Erich Sengelmann of JLL represented Actelion in the transaction. The brokers involved were not immediately available Monday afternoon for comment.
Located 10 minutes south of the San Francisco Financial District and five minutes north of the airport, Sierra Point is a 102-acre business park that includes several class A office buildings and has its own exit of Highway 101. The Brisbane Marina is also situated there and the San Francisco Bay Trail runs along the waterfront. The building Actelion acquired is approximately 85% leased. The other significant tenant in the building is LifeMasters, which has been subletting its space.
The 15% vacancy rate at 5000 Shoreline Ct. is consistent with the overall North Peninsula office market, which contains 35.1 million square feet that was 14.8% vacancy at the end of the third quarter, according to Cornish & Carey Commercial. The direct vacancy rate in Brisbane is 13.4%, according to C&C. According to CB Richard Ellis, the direct vacancy in Brisbane is 17.6%--30.4% when sublease availabilities are included.
Significant third quarter direct lease deals on the San Francisco Peninsula include the software firm DemandTec signing an 81,876-square-foot lease at 1 Franklin Parkway in San Mateo and Genentech, which leased just under 75,000 square feet at 601 Gateway Boulevard in South San Francisco, according to CBRE. The largest sublease was Better Place LLC, which leased 28,454 square feet in a class B office building at 1070 Arastradero Rd. in Palo Alto.
"With unemployment and vacancy levels on the rise in not just the Peninsula but across the country, the effects of the current recession will likely be felt for years to come," predicts CBRE's third quarter report. "Although the Peninsula is not immune to these effects, its diverse tenant base of biotech, high tech, financial and business services should insulate the Peninsula from severe, long-term effects."
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