The office property at 2890 N. Main St. is 94% leased with US Bank as its anchor tenant.
WALNUT CREEK, CA—Asking rent discounts between the North I-680 corridor and similar class-A markets such as San Francisco and Oakland are at an all-time high of 48% and 23% respectively, causing tenants in those markets to seek more affordable transit-oriented locations along the corridor, says Newmark Knight Frank. And indeed, that's what is happening in the office market along North Main.
In response to this popularity, Century | Urban, a real estate investment and advisory firm, recently acquired a 42,667-square-foot office building at 2890 N. Main St. The three-story building is 94% leased with US Bank as its anchor tenant.
“The combination of stable cash flow from a diversified tenant base, prominent corner identity and highly coveted transit-oriented location, makes the acquisition a highly attractive investment opportunity,” said Bryant Sparkman, Century | Urban principal.
2890 N. Main benefits from a short walk to the Pleasant Hill BART Station and its proximity to a host of amenities including Sprouts Market, Walgreens, 24 Hour Fitness and a significant retail amenity base. The property recently underwent a $1.5 million capital renovation that included mechanical, lobby and restroom upgrades.
“We are excited to close the sale of this property, which proved to be a strong performer for our investors after 3-1/2 years of ownership,” said David Messing, Graham Street Realty managing principal. “The property maintained strong occupancy throughout our ownership tenure and benefited from a complete common area upgrade during this time.”
Newmark Knight Frank senior managing directors Mike Zylstra, Forrest Gherlone and Seth McKinnon represented Graham Street Realty in the approximately $12.3 million sale to Century | Urban.
2890 N. Main is well-positioned to take advantage of tenant in-migration, said Zylstra.
“Walnut Creek's central East Bay location, proximity to executive and labor force housing, and its abundance of restaurants, retail and entertainment amenities will continue to draw tenants,” he tells GlobeSt.com. “In addition to these assets, lengthy Bay Area commutes will continue to put a premium on offices located at or near transit stations.”
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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.
