By Jon Peterson
Belmont-based Embarcadero Capital Partners has placed on the market for sale the 104,741 square foot office/R&D asset Arroyo Center in Pleasanton. The pricing guidance on the sale is $19 million, or just over $181 per square foot, according to sources that track the sale of office and R&D properties in the Tri-Valley region.
The seller has hired Newmark Knight Frank to be the listing agent on the trade of the property. Those working on the sale include Grant Lammersen, vice chairman, along with Mike Zylstra and Tyler Meyerdirk, both senior managing directors. NKF declined to comment when contacted for this story.
Embarcadero Capital has been the owner of the property since 2014. The real estate investment firm had paid $18.8 million for the property then, according to industry sources. During that same year the property did go through a renovation. The asset was first developed in 1984.
The property up for sale is located at 5758 and 5794 West Las Positas Blvd. The overall occupancy of the property is 36 percent. The occupied portion of the asset is leased to Gatan, a subsidiary of AMETEK, Inc. This tenant occupies space in the building at 5794 West Positas Blvd. with a lease that lasts through February 2023. It uses the space as its corporate headquarters, according to the company’s website.
Hewlett Packard had been a tenant in the building at 5758 West Las Positas when Embarcadero Capital had acquired the fully-leased property in 2014. The tenant stated on its website that this office in Pleasanton is now permanently closed.
The new owner of the property will have the chance to create additional value by leasing up the empty space in the property. This would include the opportunity to cater to both office and R&D users in a market currently experiencing record low vacancy. The R&D vacancy in the Tri-Valley region has dropped from 22 percent in 2011 to now sitting at 8.7 percent, according to sources that track this kind of information.
The Arroyo Center is located within the Hacienda Business Park. It stands 1.5 miles from the Pleasanton BART Station. It also is near major retail operations like Whole Foods, Starbucks and Chipotle.