By Jon Peterson
Belmont-based Embarcadero Capital Partners has placed on the market for sale the 302,000 square Hacienda Terrace office building in Pleasanton. The potential pricing guidance on the property is approximately $70 million, according to multiple sources aware that the property is up for sale.
Selling a partially vacant and multi-tenant suburban office building in the current environment may not be an easy task for the current property owner, according to estimates. The overall office building sales market is very unpredictable at the moment, which could expect some headwinds in the near to mid-term.
Most of the recent office building sales that have been completed in the greater San Francisco Bay Area have involved assets that are fully leased to a single tenant with good to very strong credit. Properties that are leased to more than one tenant and have some vacancy are not are not getting as much interest from investors, although every property offers its unique set of opportunities.
The current occupancy of Hacienda Terrace is 70 percent. Embarcadero Capital stated on its website that the investment firm is still actively leasing the property and seeking tenants to fill the remainder of the vacant space. Some of the tenants in the property now include a mixture of technology, life science, legal and health industries. The current owner had acquired the property in April 2009. It is not clear what the owners had paid for the property at that time.
The listing agent on the current sale is Eastdil Secured.
The sale of Hacienda Terrace involves three office buildings that are located at 4301, 4305 and 4309 Hacienda Drive. All of the buildings are considered to be mid-rise buildings on a two-story podium. The roof level of the podium is finished as an outdoor common area and there are additional outdoor terraces on the upper floors.
The property features a desirable location from a mass transportation perspective—it is just a four-minute shuttle ride from the Dublin/Pleasanton BART Station. There are several shared amenities including a conference center, showers and lockers and electric vehicle charging stations. Hacienda Terrace is located within the Hacienda Business Park in Pleasanton. This park totals 875 acres of mixed-use space totaling over 11 million square feet of office, retail and residential real estate.
The Class A office market in Pleasanton has a current vacancy of 12.4 percent through the second quarter of this year, according to data compiled by Colliers International. The total square footage in this sub-market is 6.8 million square feet.