The two 6-story office buildings located at 1200 & 1220 Concord Avenue in Concord have sold earlier this week, according to a document published by Newmark Grubb Knight Frank. According to public documents, the transaction for the 350,256 square foot property closed at $33,125,000, or just over $94 per square foot. The buyer was affiliated with AD Seeno, which is the builder of Discovery Homes & Seeno Homes and Seeno Construction Company.[contextly_sidebar id=”uAGFJoTC1pasbxIVixeLrgCrsEPR1gmK”]According to earlier discussions The Registry had with sources aware of the sale, the pricing was expected to land below the $100 per square foot level, which comes to approximately one third of replacement cost office buildings in Concord, according to sources who follow this information in the East Bay markets.
The seller of the property was Radnor, Penn.-based Brandywine Realty Trust. This is the public REIT’s only remaining asset in the San Francisco Bay Area. The listing agent on the sale was the San Francisco office of Newmark Grubb Knight Frank, which includes the team of Steven Golubchik and Grant Lammersen, both vice chairmen at the firm, and Edmund Najera, executive managing director, and Tim Walling, associate director.
The property will be losing a major tenant when Wells Fargo moves out of the buildings. This company had signed a lease for 334,000 square feet in 2010 with a term of seven years. Wells Fargo’s departure will leave the property only 25.7 percent occupied, and it will make the property the only 100,000+ square foot, single location asset in the North I-680 corridor that is currently available.
The Class A sector of the Concord office market has a current vacancy of 12 to 13 percent. This market is considered a less expensive alternative to Walnut Creek. The rental rates in Concord are typically half of what they are in Walnut Creek. Another difference in the two markets has to do with parking revenue. Parking spaces at office buildings in Concord are free while there is a charge to park at office properties in Walnut Creek.
Wells Fargo made the decision earlier this year to move from Concord Airport Plaza into a different location in Concord. It signed a lease for 285,000 square feet to move into Swift Plaza located at 1655 and 1675 Grant Avenue. These buildings are owned by San Francisco-based Swift Real Estate Partners.