By Meghan Hall
In one of the largest transactions of the second quarter, Diamond Investment Properties has purchased a two-building office development in San Mateo for $320 million, or about $1,050 per square foot, according to a market report released today by Colliers International. Located at 400-450 Concar Dr., the property was sold by Goldman Sachs and Hines, who had worked to redevelop site, which was completed in 2017.
The two buildings total 305,000 square feet and sit on 3.3 acres. In 2018, WeWork announced it would be taking space at 400 Concar, which totals about 95,000 square feet; the site became WeWork’s first lease in San Mateo and in the Mid-Peninsula market, adding 1,650 WeWork desks. The 400 Concar building sits across from its 210,115 square foot counterpart. Global Saas Customer Experience Management firm Medallia announced in April of 2016 that it would make the building into its new headquarters. However, in February of this year it was announced that Snowflake Computing would be taking over Medallia’s space in the development.
The office complex is located just off of S. El Camino Real and State Route 101, and is just across from a shopping center anchored by RiteAid, T.J. Maxx and Ross. Other technology firms are also located along Concar Dive, including SurveyMonkey and Guidewire Software.
Both investors and tenants remain bullish for space on the San Francisco Peninsula, and demand continues to increase in though rents are continuing to rise, states Colliers’ report. Buildings in core locations and with large blocks of space will continue to be in demand throughout the second half of 2019.
