Deutsche Sets New Bar for San Mateo Campus

San Mateo, Deutsche Asset & Wealth Management, Peninsula, Clearview Business Park, Eastdil Secured, Lowe Enterprises, Bay Area news, San Mateo real estate

By Nancy Amdur

New York-based Deutsche Asset & Wealth Management gained an office campus in a prime San Francisco Bay Area location with its recent purchase of the Clearview Business Park in San Mateo.

Clearview Business Park in San Mateo The Registry real estateDeutsche “set a new benchmark,” paying approximately $125.5 million, or $464 per square foot, for the 270,000-square-foot property, said Robert McSweeney, the senior vice president and managing director at commercial real estate firm CBRE Group, Inc. in Foster City.

Deutsche acquired the business park in partnership with Belmont, Calif.-based Embarcadero Capital Partners, according to Randy Keller, principal and managing director of commercial real estate firm Avison Young in Foster City. Deutsche declined to comment on the purchase and Embarcadero Capital Partners did not return a call for comment.

The 22-acre office park at 3000-3155 Clearview Way is fully occupied and tenants include solar power provider SolarCity and wearable camera company GoPro, Inc.

The deal gives Deutsche a well-located property in a strong market.

“It’s right in the heart of the mid-Peninsula,” McSweeney said. The property is adjacent to Highway 92 and between Highway 101 and Interstate 280. Also, it is centrally located between San Francisco and San Jose airports. The office campus is next to the College of San Mateo and within one mile of the Laurelwood Shopping Center.

Clearview, formerly known as San Mateo Executive Park, was sold by Los Angeles-based Lowe Enterprises, which owned the property in partnership with O’Connor Capital Partners and Pearlmark Real Estate Partners. The property was vacant when Lowe and its partners acquired it in 2007, and Lowe immediately began a $20 million renovation to modernize the six-building campus to Class A standards.

Lowe planned further construction at the property and last year gained approval from the City of San Mateo’s Planning Commission to build a 107,700-square-foot building and a 655-space parking garage at the site.

Expansion possibilities and built-in tenants likely made the business park an attractive asset, according to local commercial real estate brokers.

“There are growth opportunities and there is a good expectation that one tenant will probably expand at some point,” Keller said. GoPro, which announced in February that it filed initial public offering documents with the Securities and Exchange Commission, is a likely candidate for growth, he added.

Brokers from the San Francisco and San Jose offices of real estate investment banking firm Eastdil Secured handled the sale but declined to comment further.

Institutional investors are interested in Peninsula properties in part due to rising rents over the past two years, Keller said. Central San Mateo County, which includes the town of San Mateo, ended the first quarter 2014 with an office vacancy rate of 9.9 percent and an average asking rate of $3.69 per square foot, according to a report by Avison Young.

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