DivcoWest’s Buying Spree Continues with $55.7MM Acquisition of Burlingame Properties

DivcoWest, 1250 Old Bayshore, 1200 Old Bayshore, 1240 Old Bayshore, Burlingame, Holiday Inn Express
Courtesy of Holiday Inn Express

By Meghan Hall

San Francisco-based DivcoWest has started the new year with a flurry of activity, both buying and selling numerous assets across the Bay Area in recent weeks. In the latest deal to close, the firm acquired several parcels in Burlingame for $55.7 million. According to The Mercury News, who first reported the deal, DivcoWest purchased the parcels over a several month-long period between August of 2021 and January.

The properties are located at 1200, 1240 and 1250 Old Bayshore Highway. The first deal to close was for 1250 Old Bayshore. DivcoWest paid $12 million for the property, which is currently developed with a retail property that includes Max’s restaurant. In a second deal, finalized in December, DivcoWest acquired additional parcels at 1250 Old Bayshore. The property is developed with a 146-key Holiday Inn Express. 

In the last two deals, DivcoWest spent $12 million to acquire mostly vacant parcels at 1200 Bayshore. In January, an additional $13.8 million was spent to purchase 1240 Bayshore, developed with an office building.

The acquisitions were finalized alongside a number of other deals across the Bay Area. On January 7th, DivcoWest acquired a South San Francisco office asset at 5000 Shoreline Ct. for $164.5 million. The building rises three stories and totals 138,381 square feet. In all, it sits on just under 8.6 acres.

In recent months, the firm also acquired 6550 Dumbarton Circle in Fremont for $72.2 million; 63 percent of the asset has been leased to Alexza Pharmaceuticals. The company is also working on a new vision for the Sand Hill Collection, a collection of buildings in Menlo Park totaling 552,000 square feet.

The firm has also sold property. In another transaction, DivcoWest sold two American Canyon assets at 300 and 400 Boone Drive for $158.9 million, according to previous reporting by The Registry. The buildings are leased to Amazon and the Biagi Brothers, respectively. 

Over the past 30 years, the firm has acquired 50 million square feet of space. Currently, it has 11.6 million square feet under management, worth about $12.9 billion, according to the company’s website.

West Coast Commercial Real Estate News