SAN RAMON, CA—Locally based Meridian Property Co. has closed escrow on the purchase of the Atrium, a 74,000-square-foot professional office building located in Alameda County at 5776 Stoneridge Mall Road in Pleasanton, CA. Meridian purchased the property from Los Angeles-based Downtown Properties in an off-market transaction.
Simon Vogt of Lee & Associates-East Bay in Pleasanton represented Meridian. Downtown Properties was represented by Katherine J. Kelleher of CBRE in Oakland, CA.
The sales price could not be disclosed, however Meridian's COO John Pollock exclusively tells GlobeSt.com that "the purchase price was well below replacement cost and significantly below the cost of our recent newly constructed buildings.”
Meridian's lender is Umpqua Bank, Pollock notes. “This is Meridian's second transaction with Umpqua in the past 12 months. Umpqua recently financed Meridian's Rohnert Park acquisition and renovation.”
In the acquisition of the Atrium, which was a 45-day escrow, Meridian paid cash utilizing its unsecured line of credit and will put permanent debt on the project with a new project-specific loan through Umpqua within 30-days, he adds. “Due to the holidays, there wasn't enough time to finalize a loan for the purchase,” Pollock notes.
Built in 1982 on 3.55 acres, the three-story building is located one mile south of Interstate 580 (via Foothill Road), and one mile west of Interstate 680 (via Stoneridge Drive) directly across from Stoneridge Mall. The building was 100% occupied at the time of the sale.
According to Pollock, this building is uniquely positioned within the Pleasanton/Stoneridge submarket. Rents have risen quickly over the past 18-months. Fortunately for Meridian, he says, the rents in the building have not, “which will give Meridian an opportunity to make improvements and adjust rents to market rate as leases expires. Over 60% of the building's leases will expire over the next 24-months.”
Pollock also tells GlobeSt.com that "Meridian was able to purchase this building with a handsome in-place cap rate so the building will provide a nice cash flow as we work to make the improvements and renew tenant leases.”
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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.
