(Mark Your Calendars: RealShare REAL ESTATE 2012, March 22nd in Los Angeles).
CONCORD, CA-Locally based Swift Realty Partners is selling two class A buildings here that contain 599,556 square feet of office and Tier 4 data center space and are 100% NNN leased to Bank of America N.A. through July 2018.
According to Jones Lang LaSalle, who is marketing the properties, B of A’s lease offers “outstanding income stream security.” Although JLL could not comment on how much they might fetch, a source not involved in the deal tells GlobeSt.com that it will most likely fetch $110 million. Swift bought the buildings as part of a four-building portfolio for what GlobeSt.com learns was $71 million in an off-market deal. As GlobeSt.com exclusively reported in July, the sale was believed to be the largest single office property sold in the San Francisco Bay area in the last three or four years. The property included buildings of 380,000, 310,000, 210,000 and 200,000 square feet, with Bank of America occupying all of them except the 200,000-square-foot building, which was vacant at the time of purchase.
JLL managing directors Michel Seifer and Rob Hielscher, along with VP Aaron Herter, are leading the team on the transaction. “This is a unique and attractive investment opportunity that offers the combination of institutional asset quality, an outstanding location in one of the country’s strongest regional office markets, and in-place yield backed by an investment-grade tenant,” Hielscher says in a prepared statement.
“Strong Bay Area economic fundamentals that have been driving robust activity in San Francisco and Silicon Valley has now spread to the East Bay where we have seen a marked increase in leasing activity,” Seifer tells GlobeSt.com. “Transit-oriented locations such as Concord Bart and Walnut Creek Bart have performed particularly well of late as tenants seek high quality properties that offer the convenience of public transportation.”
The two buildings are located at 2000 Clayton Rd. and are part of Swift Plaza, a four-building, 1-million-square-foot class-A office complex that is one of only two class A office complexes immediately adjacent to the Concord BART station.
Swift Plaza is located within minutes of the East Bay’s primary freeways, Interstate 680 and Highway 242. On-site amenities include a full-service restaurant, fitness center and access to a six-level parking garage. Additionally, Swift Plaza’s frontage along Concord’s main thoroughfare offers strong visibility and easy access to the Property.
As GlobeSt.com previously reported, Swift Realty Partners is an investment firm headed by former Equity Office Properties exec Christopher Peatross. Peatross, who was formerly president and CEO of Equity Office Properties, is president of Swift Realty Partners, which was formed in June 2010 to acquire opportunistic investments in office, industrial and other commercial real estate. The firm has financial backing from the Blackstone Group.
Peatross was a speaker at an Allen Matkins View From The Top conference that was reported on by GlobeSt.com in September 2010. In that report, Peatross said that his company was looking at assets that are industrial, office and R&D that can trade at a historically low value—50% of its previous transaction price in 2007. “Lots of times, the owner has these assets, which are under water, and the owner can’t put money in the asset,” he said, adding that a local player with capital can make all the difference, the GlobeSt.com report said.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
