By Jon Peterson
PGIM Real Estate has sold the 347,129 square foot Concord Corporate Centre in Concord for $63.5 million, or approximately $183 per square foot, according to public records. The buyer is Alabama-based Harbert Management, as stated by sources familiar with the transaction.
The property, which is located at 1320-1390 Willow Pass Road, is comprised of two buildings. The 7-story One Corporate Centre was built in 1985, and the adjoining 10-story Two Corporate Centre was built in 1987. The property is multi-tenanted, with Patriot Contract Services, Barrett Business Services, Eichleay and Patelco Credit Union being some of the companies in the property.
PGIM declined to comment for this story other than to confirm that the sale of the property had been completed. The real estate manager had hired the San Francisco office of Cushman & Wakefield to oversee the sale process. Cushman & Wakefield chose not to comment for this story.
Concord Corporate Center has now sold three times since 2011. In that year, the property was acquired by San Diego-based Westcore Properties for $41 million, or around $118 per square foot. This real estate investment firm then sold the property in 2014 to PGIM for $55 million.
PGIM had acquired the property in a joint venture with San Francisco-based Montgomery Advisors. The venture’s strategy was to buy the property, upgrade the asset and then sell the asset. One part of the renovation was to put in a new lobby in the buildings. The property was then brought to market for sale in early 2017. It was not sold at that time, since there wasn’t a great deal of interest in suburban office buildings in this area, according to sources who track sales in the East Bay. The asset was then taken off the market and brought back up for sale later in the year.
PGIM had made its acquisition of Concord Corporate Centre for its commingled fund, PRISA III. This is a commingled fund that has an open-ended investment structure. This means the fund is always open to new fund commitments, as compared to closed-end funds that have a certain amount of time as to when commitments can be made to the fund.
PRISA III has a value-add investment strategy. The commingled fund looks to invest capital on a nationwide basis. Most of the capital in the fund is invested in either office buildings or apartment projects.