By Jon Peterson
Snowflake Computing Inc. has agreed to take over all of Medallia’s 200,000 square foot office space leased at 450 Concar in San Mateo, according to industry sources.
Houston-based Hines and Chicago-based Pearlmark are the two owners and developers of this building in a joint venture that began some years ago to develop the 400|450 Concar, a new Class A office complex totaling 305,000 square feet on 3.3 acres in San Mateo. The San Francisco office of Hines declined to comment when contacted for this story.
Medallia had been the previous tenant of the entire 450 Concar office building. The other property, the 400 Concar building, is around 96,000 square feet, and this entire building is occupied by WeWork, which took the space in July of 2018. WeWork’s lease in San Mateo is its first in the city and in the Mid-Peninsula market. The space added 1,650 new WeWork desks when it opened in December of 2018 spread across four floors of the building, according to a statement from the company.
Hines had placed the buildings on the market for sale in 2018 when it locked in Medallia and WeWork as tenants of the complex. The listing agent on the sale was the San Francisco office of Eastdil Secured. The asset was then taken off the market while the Snowflake lease was in negotiations.
The office complex right now is not on the market for sale, according to industry sources that track the sale of office buildings in San Mateo. This could change in the future once the lease with the new tenant has materialized and Hines re-evaluates its position in San Mateo.
The potential sales price of the property would be in excess of $300 million, according to sources that are familiar with the property, given the roster of companies and the level of leases they have recently signed. Should this level of pricing be achieved, it would represent one of the higher amounts ever paid on a per square foot basis for an office building in San Mateo.
Centrally located near the intersection of U.S. Hwy. 101 and Interstate 92, 400|450 Concar is uniquely positioned between San Francisco and Silicon Valley. The highly visible property is directly adjacent to the Hayward Park Caltrain station as well as the future retail and housing amenities at Station Park Green, which will bring 35,000 square feet of new retail and 599 rental housing units to the corner of Concar & Delaware.