Alameda Office Assets Sell for $69.3MM to Paceline Investors

By Meghan Hall

A number of recent deals are continuing to point to investor interest in East Bay assets, including the recent sale of several office buildings in Alameda. In a transaction that closed on June 21st, San Francisco-based Paceline Investors paid $69.3 million for 1420 and 1451 Harbor Bay Parkway, and 1350 S. Loop Rd. 

The largest transaction was for 1420 Harbor Bay Parkway. Paceline paid $31.75 million, or about $260 per square foot, for the building. The asset totals 121,600 square feet and is occupied by Abbott Diabetes Care.

In the second of the deals, Paceline paid $30.1 million for 1451 Harbor Bay Parkway, according to The Mercury News, who first reported the deal. The building totals 86,100 square feet and is mostly occupied by Kaiser Health Alameda. The property sold for just under $350 per square foot.

In a third deal, the firm paid $7.4 million for 1350 S. Loop Road. 1350 S. Loop Rd. totals 38,900 square feet and sold for $190 per square foot. The building is occupied by TRIC Tools.

In February of last year, Paceline, along with Truth North Management Group, paid $33.5 million, or about $261 per square foot, for 1600 and 1650 Harbor Parkway. The deal was an off market-transaction, and the two building campus totals 128,493 square feet.

According to The Registry’s previous reporting, the partnership was attracted to 1600 and 1650
Harbor Parkway because of their recent construction, 15 foot deck to deck heights, significant power, and window lines in a submarket that has increasingly become desired by life science, medical device and other lab oriented tenants led by Penumbra, Exelixis and Abbot Labs.

At the end of the first quarter of 2021, the East Bay office market was still recovering from the impacts of the pandemic. The county’s commercial real estate market saw a decline in office occupancy as a result of shelter in place orders. An April report released by Cushman & Wakefield–the most recent available–showed that the vacancy rate at the end of Q1 was 16.8 percent. In Northern Alameda and Southern Alameda, the vacancy rates sat at 34.1 percent and 15.1 percent, respectively. Cushman & Wakefield predicts that looking ahead, increase vaccination levels and the activity of life sciences tenants will bolster the Alameda office market moving forward.

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