By Jon Peterson
Blackstone Real Estate Partners, through its operating office platform with Equity Office, is in the process of selling three office buildings in San Mateo for $82 million, or approximately $307 per square foot, according to sources familiar with the transaction. The properties involved in the sale are located at 1900, 1950 and 2000 Alameda de las Pulgas and total 267,000 square feet. The buyer of the properties will be San Francisco-based Paceline Investors and partner Bridge Investment Group.
Blackstone declined to comment when contacted for this story. Paceline did not respond to an e-mail on its planned purchase.
Blackstone had owned the asset since mid-November of last year. The property was sold by Hines in a $1.162 billion deal announced in July of 2016 that saw approximately 3 million square feet of office properties transacted as the company liquidated and dissolved one of its entities, Hines Real Estate Investment Trust, Inc. Hines had acquired the property in June of 2005 for $58.45 million.
Blackstone used Blackstone Real Estate Partners VIII as its capital source on the transaction. This is an opportunistic commingled fund for which the manager raised $15.8 billion of equity in October 2015.
The largest tenant in the buildings is the California Casualty Insurance Company. The complex was first developed in 1983. The property is considered to be a value-add office investment for the new owner once the deal closes.
The listing agent on the sale was the San Francisco Bay Area Capital Markets team at JLL. This included Will Connors and Daniel Renz.