By Nancy Amdur
San Mateo will soon receive new Class A office space as Hines plans to break ground on a 300,000-square-foot project during the first quarter of 2015. Hines’ transit-oriented development will comprise two four-story buildings at 400 and 450 Concar Dr., adjacent to the Hayward Park Caltrain station and providing easy access to Highways 92 and 101.[contextly_sidebar id=”yH4Up9Vbymbbs2PKJJ7hDO1u5M8pBJ7E”]Although Hines, in a partnership with Pearlmark Real Estate Partners, bought the property in 2008 and received project approvals from San Mateo’s planning division in 2010, the company waited until the market was right before starting the project, said Cameron Falconer, senior managing director for the San Francisco-based developer.
Hines also noted that Philadelphia-based EBL&S Development plans to start its Station Park Green mixed-use project across the street at 1700 and 1790 South Delaware St. early next year.
“We really like the fact that we’ll be building our project as they’re building theirs,” Falconer said. “That will bring a true mixed-use environment at the train station with [Station Park Green’s] 599 units of residential and a substantial amount of open space and retail amenities, which will also be great for our users.”
Along with housing, Station Park Green will include 15,000 square feet of commercial space, 25,000 to 30,000 square feet of retail space and 2.3 acres of parks.
Hines plans to start its development without a tenant in place, but potential tenants have already expressed interest, Falconer said, adding that the offices are suited for a wide variety of users. The space can be customized for a single tenant or multiple tenants, according to the company’s Web site.
The company also sees a demand for office space in the area, Falconer said. San Mateo is located on the Peninsula between San Francisco and San Jose, and “we believe it’s a great central location,” he said, adding that being near transportation is “becoming more and more critical for the employers in the market.”
Further, there is a “severe lack” of new Class A office space in San Mateo as none has built in about a decade, Falconer said.
“There’s a need for it, and we’re excited to provide it,” he said.
According to a recent, third quarter industry report from Colliers International, the Greater San Francisco Peninsula recorded gross absorption of 1.7 million square feet during that time. That figure is the highest for any quarter in the last three years. Not included in this figure is the Box.net pre-lease of 334,000 square feet in Redwood City at the Kilroy Realty-Hunter Properties Crossings/900 development, which is also sitting adjacent to a Caltrain stop.
Hines’ project, which is pre-certified LEED Platinum, will sit on 3.3 acres and replace a former Denny’s restaurant and TeleCenter television and appliance store, said Craig Kalinowski, a senior vice president at Newmark Cornish & Carey in San Mateo, who is working to lease the property. The two sites at 470 Concar esir. and 1830 S. Delaware St., which are now being marketed as 400|450 Concar, are bordered by Delaware, Pacific Boulevard and Highway 92.
The 400 Concar building will comprise 90,000 square feet. At 450 Concar, plans call for a 96,000-square-foot south building and a 104,000-square-foot north building. An optional skybridge at 450 Concar can expand the floor plates on the top two floors from 32,000 square feet to 64,000 square feet to connect the two buildings, according to a project brochure. The development will feature 11,000 square feet of ground-floor space that can be used as pedestrian-oriented office, amenity or retail space, depending on demand, Falconer said.
Additionally, the City of San Mateo last week approved a revised parking layout for the Concar project, which will include 788 spaces, said Tricia Schimpp, a senior planner for the city’s planning division. The project also will include bicycle parking and shower and changing facilities.
San Francisco architecture firm Form4 designed the buildings with features such as floor-to-ceiling windows, a roof terrace, ground-level promenades and spacious lobbies, according to the project’s Web site.
Hines owns and manages more than 13 million square feet of office space in Northern California.