Diablo Technology Center is located in the Hacienda Business Park.
PLEASANTON, CA—A three-building portfolio was acquired by Ridge Capital Investors LLC and Contrarian Capital Management LLC last year for $35.1 million. After an extensive rehab of common areas, landscaping, signage and tenant space improvements, the 191,009-square-foot Diablo Technology Center has sold for a reported $47 million or $246 per square foot, according to Real Capital Analytics. The class-A office/R&D property is located within the Hacienda Business Park.
Not only did the sellers invest in significant improvements during its time of ownership, the JV owners signed 66,000 square feet of new leases during that time. The three properties were 100% leased and occupied at closing to 11 tenants, with most of the tenancy from longer term, credit-quality tenants.
The three-building ensemble was sold in two parts to two separate Bay Area investors, including Black Mountain Properties LLC, which was seeking 1031 exchange properties, GlobeSt.com learns. Properties on Willow Road and Stoneridge Drive were sold together and the West Las Positas asset was sold alone.
4511 Willow Rd., a 65,725-square-foot building, houses tenants including homebuilding company PulteGroup Inc., fast oil-change concept firm Oil Changer Inc. and Sunbelt Controls, a full-service building automation contractor.
5870 Stoneridge Dr., a 48,390-square-foot building, is occupied by tenants including CooperVision Inc., one of the world's leading manufacturers of soft contact lenses, and Nellcor Puritan Bennett, a Medtronic subsidiary.
The lone sale of 5735 West Las Positas Blvd. consists of a 76,894-square-foot building, home to tenants including power management firm, Eaton, sales and marketing agency, Acosta, and Schneider Electric, the global specialist in energy management and automation.
Centrally located with easy access to transit and major highways, Diablo Technology Center is within walking distance to numerous restaurants, services and amenities. Hacienda Business Park is a 10 million-square-foot business park located at the Dublin/Pleasanton BART station. The park houses more than 650 companies and employs approximately 18,000 people.
NGKF Capital Markets'Steve Golubchik, Mike Zylstra, Grant Lammersen, Forrest Gherlone and Tim Walling handled the sale of the center on behalf of Ridge Capital and Contrarian Capital Management. Colliers International represented the buyers.
“We've seen high net worth capital become increasingly aggressive, finding value in today's real estate market,” Golubchik tells Globest.com. “The buildings are some of the best in the Tri-Valley R&D market, and coupled with the high-quality income stream, they offer a compelling return and investment profile for longer-term, cash flow-oriented investors.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
