(EDITOR’S NOTE: According to public documents, the transaction on the 225,400 square foot property closed for $129.5 million, or around $574 per square foot. The San Jose Mercury News was the first to report the sale amount.)
Newmark announces it has arranged the sale of Hollis Business Center, a two-building Class A office and life science conversion opportunity located at 6401 Hollis Street and 1480 64th Street in Emeryville, California. The property is currently 84 percent leased to a diverse mix of high-quality tenants.
Newmark’s Head of Northern California Capital Markets Steven Golubchik, Vice Chairman Edmund Najera, Managing Director Jonathan Schaefler, and Associate Directors Darren Hollak and Jack Phipps represented the seller, BentallGreenOak, in the transaction to an affiliate of Beacon Capital Partners.
“Hollis Business Center provides an investor the immediate ability to offer a best-in-class mixed-use project with both creative office space and the opportunity to convert existing vacancy to premier life science space in the severely supply-constrained Emeryville market,” says Golubchik. “As a result, Hollis Business Center received intense demand from investors seeking to gain a foothold in the high-barrier-to-entry life science market.”
1480 64th Street was originally constructed for life science use, de-risking the conversion process for investors. Hollis Business Center features optimal slab-to-slab heights, a 637-stall parking structure appealing to a post-COVID-19 vehicular commuter tenant base and convenient access to the 580 and 80 Highways as well as mass transit via BART, Amtrak and EmeryGoRound.
The two-building property is situated in the heart of Emeryville in one of the fastest growing life science clusters in the country with more than 150 companies in the life science and biotechnology field. This submarket is among the highest concentration of life science companies in California.
Life science continues to be a top performing sector in the Bay Area market as relentless demand for space continues to outpace existing supply. The overall Bay Area life science market currently has 2.2 million square feet of active tenant requirements and an availability rate of just 7.2 percent, according to Newmark Research. Totaling 4.2 million square feet and representing 15 percent of the total Bay Area market, the Northern East Bay life science landscape boasts an availability rate of 5.6 percent.
About Newmark Group, Inc. (NASDAQ: NMRK)
Newmark Group, Inc. is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology and industry expertise, Newmark brings ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark Group, Inc. generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.