SAN FRANCISCO—DivcoWest has completed the purchase of 700-900 Concar Dr., a three-building, 2003-vintage, class A office campus in San Mateo, CA. The approximately 210,000-square-foot campus is 100% leased to five credit tenants, the largest of which are Salesforce and Japanese online retailer Rakuten.
Since its completion, the Campus has held a strong appeal for tenants, particularly those in the technology industry, because of its proximity to the Peninsula's talent-base, surrounding retail and residential amenities and visibility and access to key transit infrastructure. 700-900 Concar Drive is less than half a mile from the Hayward Park Caltrain station and has direct visibility and accessibility to the San Mateo Bridge, Highway 92 and Highway 101.
Commercial development in the immediate vicinity of the Campus includes Station Park Green, a $300-million, five-story mixed-use development with 600 apartments and 60,000 square feet of retail, and the 1,000-home Bay Meadows redevelopment.
“This is a highly competitive asset in one of the Bay Area's strongest and most promising submarkets,” says Sam Hamilton, DivcoWest's Head of West Coast Acquisitions. “We believe that, like our other recent acquisitions in the market, it offers the advantage of strong, in-place current income from current tenants with the potential to attract additional major tenancies in the future due to a shrinking inventory and displacement experienced by other central Peninsula office users,” he adds.
This is the third investment made by DivcoWest in the central Peninsula submarket in the last six months. In October 2014, the company acquired two buildings totaling approximately 450,000 square feet located at 1400-1500 Seaport Boulevard in the Pacific Shores Center in Redwood City; additionally, in December 2014, as GlobeSt.com reported, DivcoWest acquired the approximately 115,600 square foot Century Plaza in Foster City - both of which are within a few minutes' drive of the Campus.
According to CBRE, the central Peninsula office market has seen 16 consecutive quarters of rent growth and the overall market continues to experience a shrinking supply of class A multi-tenant office space due to recent acquisitions by owner-users. This is also contributing to an appreciation of newer class A assets in the market.
Erik Doyle, Will Connors, and Michel Seifer of JLL represented the seller.
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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.
