Gramercy Property Trust Sells Comcast Campus in Livermore for $59.5MM

Gramercy Property Trust Comcast Office Campus Livermore HFF Align Real Estate Tri-Valley Colliers Equity Office Properties Pacific Corporate Center


New York City-based Gramercy Property Trust, announced recently that it closed on the disposition of the Comcast Office Center, a three building portfolio located in Livermore, California. The sales price was $59.5 million or $269 per square foot. The in-place cash cap rate was 9.1 percent.

[contextly_sidebar id=”1I3G6RvgmntzopBEt9UhTkvhgbm4IOEl”]The San Francisco office of HFF represented the seller in the transaction. HFF marketed the asset on behalf of the seller, Gramercy Property Trust, Inc. and procured the buyer, Align Real Estate. The HFF investment sales team representing the seller was led by Michael Leggett, senior managing director and co-head of HFF’s West Coast team; managing director Scott Pertel and senior managing director Gerry Rohm.

The buyer, Align Real Estate, is based in San Francisco. One of its executives is Jason Chadorchi, a managing principal with the firm.

Comcast Office Center is 100 percent triple net leased to Comcast and serves as the company’s regional headquarters. The nearly 27-acre campus, comprised of 3011, 3055 and 3077 Comcast Place, offers tenants abundant parking (1,320 stalls), outdoor seating and volleyball and basketball courts. Comcast Office Center is positioned in the Tri-Valley region of the greater San Francisco Bay Area and is just off of Interstate 580 with immediate access to Interstate 680 and CA Highway 84. This location is within 10 minutes of the Pleasanton BART station servicing San Francisco and the greater Bay Area and close to the future Livermore BART station and planned surrounding developments.

The sale is part of the Gramercy’s previously announced plan to dispose of select single and multi-tenant office assets. Since the announcement, the company has disposed of approximately $722.5 million of single and multi-tenant office assets at a weighted average 6.1 percent exit cap rate. Total sale proceeds and weighted average cap rate reflect 100 percent of the sale and NOI value of the Weston Portfolio, in which the company held an 80 percent joint venture interest. The company has approximately $115 million under contract and approximately $625.0 million of assets currently in the market, which includes a proposed sale of a 75 percent interest in a portfolio of office assets.

Gramercy Property Trust is a global investor and asset manager of commercial real estate. The company specializes in acquiring and managing single-tenant, net-leased industrial and office properties, according to a statement. The company focuses on income producing properties leased to high quality tenants in major markets in the United States and Europe.

According to a recent, first quarter of 2016 Tri-Valley Research & Forecast Report by Colliers International, Livermore continues to have the highest office and flex vacancy rate among the Tri-Valley cities, which is partially attributed to the city’s lack of mass transit availability. The two most significant office deals were Equity Office Properties Trust’s purchase of a fully occupied 30,000 square foot office building at 7901 National Drive from GE Credit in January 2016 for $5.3 million, and the 25,160 square foot renewal in Pacific Corporate Center at 7451-7499 Longard Road. Livermore continues to be a bargain opportunity for office users, with an average weighted asking full service rate of $1.60 per square foot, stated the report.

West Coast Commercial Real Estate News