SAN FRANCISCO-Earlier today, GlobeSt.com reported that Beverly Hills, CA-based Kennedy Wilson and its partner acquired the Pointe at Redwood Shores for approximately $22 million, all cash. According to HFF, which marketed the property on behalf of the seller, a joint venture between Angelo Gordon & Co. and Premia Capital, the KW will benefit from the property's potential.
The HFF investment sales team was led by director Dave Karol along with senior managing director Michael Leggett, managing director Steven Golubchik and associate director Mark Damiani. Karol says that “The San Francisco Peninsula area benefits from its proximity to a multitude of technology driven businesses, and the area has seen strong demand as the market continues to recover. The buyer will undoubtedly benefit from the property's potential for leasing up the remaining vacancy at current market rates.”
John Prabhu, president of KW Commercial Investment Group, points out that “Strong post-crisis leasing activity has driven vacancies in Palo Alto to 4.7% and in Mountain View to 3%. With these prime submarkets running out of space and increasing demand, tenants have found Redwood City and other Peninsula submarkets as an alternative location with lower occupancy costs.”
Since the beginning of 2010, Prabhu continues, “vacancy in Redwood Shores has dropped from 15% to under 6% in the first quarter of this year, with market rents rising.”
The Pointe at Redwood Shores is two class A two-story office buildings situated within the Redwood Shores submarket of Redwood City, located on the San Francisco Bay Peninsula in San Mateo County. The buildings total 89,455 rentable square feet.
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