By Meghan Hall
After just over two years of ownership, Bridge Investment Group has sold three office buildings along Alameda de las Pulgas in San Mateo for a combined $106 million, according to public documents and an industry source familiar with the deal. The transaction, which closed at the beginning of October of this year, was part of a two-part sale. Palo Alto, Calif.-based Peninsula Land acquired 1950 and 2000 Alameda de las Pulgas for a $70.5 million, while San Diego-based Phase 3 Real Estate Partners (P3RE) acquired the third building, located at 1900 Alameda de las Pulgas for $35.5 million. Property records show that this is the third time the property has traded in the last three years.
1900 Alameda de las Pulgas, now owned by P3RE, is a four-story building totaling 99,023 square feet, bringing its per-square foot price to just around $358. According to P3RE’s website, the firm plans to renovate and expand the building to 110,000 square feet. Upon completion, the building will offer Class A life science research space and will be the only life sciences building in the city of San Mateo. Delivery is anticipated for the fourth quarter of 2020.
1950 Alameda de las Pulgas is the smallest; at two stories and 22,240 square feet. 2000 Alameda de las Pulgas is the largest at 147,040 square feet, bringing the buildings’ price to just under $417 per square foot. According to Peninsula Land’s website, while the buildings are mostly occupied, there is currently 4,478 square feet available for lease.
A fund managed by Bridge Office Fund manager LLC, an affiliate of Bridge Investment, originally purchased the three-building complex in September of 2017 for $82 million. At the time of the acquisition, Bridge had planned to invest more than $7.6 million in renovations in an effort to reposition and rebrand the property.
Bridge had purchased the asset from Blackstone, who acquired the asset in November of 2016 for $84 million. The property at the time was sold by Hines in a $1.62 billion deal originally announced in July of 2016 that saw around 3 million office properties traded as Hines Real Estate Investment Trust, an entity of Hines, was liquidated and dissolved. Hines originally purchased the property in June of 2005 for $58.45 million.
Peninsula Land did not return The Registry’s request for comment; Phase 3 could not be reached for comment.