REDWOOD CITY, CA-Shorenstein Properties has tapped Jones Lang LaSalle to market two five-story class A office properties totaling 447,747 square feet at 1400 and 1500 Seaport Blvd. Both of the properties are 100% NNN-leased to Abbott Laboratories through December 2021.
DreamWorks Animation SKG subleases a majority portion of 1400 Seaport as its Northern California campus, coterminous with Abbott’s master lease. The two buildings must be purchased together, according to an announcement regarding the listing.
Leading the JLL team are managing directors Michel Seifer and Paul Lee, and senior vice president Rob Hielscher. Executive vice president Gregg Walker will provide leasing/market expertise and managing director John Manning will provide financing guidance.
The buildings were completed in 2002 as part of the Pacific Shores Center, a 10-building, 1.7-million-square-foot office development. Shorenstein Properties bought the property in 2007 on behalf of its eighth investment fund, Shorenstein Realty Investors Eight LP. More than $400 per square foot has been invested into lab improvements in 1500 Seaport. DreamWorks is investing more than $100 per square foot into its sublease space in 1400 Seaport, including a cafeteria and a movie screening room. The properties also feature abundant parking, a fitness center, a cafe and miles of walking trails.
Seifer said JLL expects the offering to have broad appeal to "investors looking for truly core opportunities as well as those that have a more traditional life science investment focus.” Seifer also points out that, driven by tremendous growth occurring within the technology and life sciences industries, leasing activity has surged in the Peninsula office market. This, in turn, has led to dramatic rental rate increases for prime office and life sciences spaces.
The Peninsula has registered seven consecutive quarters of positive net absorption, realizing a year-to-date occupancy increase of more than 1.1 million square feet resulting in a total vacancy rate of 11.8%.
“This property comes to market at a time when core deals in gateway markets are attracting a tremendous amount of investor interest, particularly in North America,” added Lee. “Investors’ hunger for yield in this low interest rate and uncertain environment has favored centrally-located core office investments in leading markets, most notably San Francisco, New York and Washington DC.”
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