By Jon Peterson
San Mateo-based Golden Pacific Investments has bought the 63,050 square-foot 2600 Campus Drive office building in San Mateo for $22.5 million or $356 per square foot, as stated in the 2018 first quarter report by Kidder Mathews.
The seller of the property was Los Angeles-based Hudson Pacific Properties. A company representative of the public real estate investment trust stated in an email that the seller would decline to comment other than reporting what the sales price was.
The office building was 100 percent vacant at the time of the sale. The new owner of the property is planning to convert the property into a Montessori school, according to the Kidder Mathews report.
A call to Golden Pacific Investments was not returned in time of this publishing.
The property that was sold by Hudson Pacific is Building 6, which is part of the company’s Peninsula Office Park. The building was considered to be a non-core asset by the REIT, which is the likely reason it was placed for sale. The capital from this sale as well as three other assets totaling $254.8 million will be used by the company to pursue value-add investment opportunities later in 2018.
The San Francisco Peninsula office market still has very strong demographics. The region’s vacancy dropped by 40 basis points from the end of 2017, as stated by Kidder Mathews. The vacancy in the market is now at 9.4 percent. The overall average rental rate rose in the first quarter to $4.97 per square foot fully serviced. This occurred mainly due to increases in the southern part of the region.