By Jon Peterson
Dallas-based Hillwood Development Co. in partnership with Oakland-based srmErnst, has placed on the market for sale a build-to-suit office building that is under construction in Alameda at 1310 Harbor Bay Parkway. The potential price point on the sale could reach $87 million, according to sources familiar with the property.
Hillwood has chosen Cushman & Wakefield to be the listing agent on the sale. Among those working on the marketing of this property are Adam Lasoff, Seth Siegel and Steve Hermann. Cushman & Wakefield declined to comment when contacted for this story.
The 126,700 square foot office building is slated for completion in May of next year, and the property is 100 percent leased to Penumbra, Inc. This publicly-traded company is a global healthcare corporation that designs, develops and markets innovative medical devices. The 15-year lease in the property will not start until June 2021. The term is a triple-net lease with three percent annual rent increases.
The property does have significant capital invested for tenant improvements. The total amount slates for this investment comes to $15.8 million, which is for high-end finishes, ample conference and break out rooms, an onsite coffee bar and perimeter offices surrounding each floor.
The new office building is located within the 325-acre Harbor Bay Business Park. This is a master planned business park with over 100 companies from a diverse set of industries. Leading companies with a presence in the business park include Exelixis, Abbott, ABB and AllCells.
Penumbra already has its 217,000 square foot headquarters operation located within the business park. The new building under construction will allow the tenant to accommodate a growing headcount for the company in the future.
The Harbor Bay Business Park is located within the Southern Alameda office sub-market. In this region, there is a total of 2.2 million square feet of commercial, according to information provided by Cushman & Wakefield. Over the past 12 months, this region has seen Class A office rents move up 8 percent, year over year, however, the submarket is still at roughly 50 percent discount to downtown Oakland Class A rents.