By Jon Peterson
While the long term effects of the last two years will take some time to play out across the commercial real estate industry in the Bay Area, one owner is bullish on the prospects of an asset sale in a constrained submarket of the region. Los Angeles-based Hudson Pacific Properties has placed on the market for sale the 246,997 square foot office building Skyway Landing in San Carlos located at 959 Skyway Road, according to information stated by the publicly-traded real estate investment trust in its 2021 fourth quarter earnings report. There is no pricing guidance available on the property at this time.
The listing agent on the sale is the San Francisco office of Eastdil Secured, according to sources that are familiar with the marketing efforts of the property. The seller has held ownership of the property for nearly seven years. It had paid $104.4 million for the asset in April 2015, according to public records. The property is the US headquarters of the multinational technology security firm Check Point.
Office industry expects are predicting that the sale of Skyway Landing will be watched closely by industry participants. It very well could set the market for a property of this type on the Peninsula market when the asset sells. A recent comparable sale to this one was 5000 Shoreline Court in South San Francisco that was acquired in January by San Francisco-based DivcoWest for $164.5 million or $1,188 per square foot. This pricing was on the higher end of the spectrum, and it was specific to the location and its proximity to the life science cluster in that city.
Skyway Landing is a two-building office property with the addresses of 959 and 999 Skyway Road. According to Hudson Pacific, the property is now 76.3 percent leased. This asset is a LEED certified property. One of its amenities is that it has EV charging stations for electric cars. There also is a dedicated Hudson Pacific Properties Caltrain shuttle to the Hillsdale Caltrain Station.
Hudson Pacific is a significant owner of office buildings in the greater San Francisco Bay Area. The public REIT owns a total of 23 buildings in the region totaling 7.3 million feet, as reported in its 2021 fourth quarter earnings report. This part of its portfolio is now 90.5 percent occupied. Its assets in Redwood Shores submarket include three buildings totaling 766,854 square feet that are 89.5 percent full. Its other properties in the Bay Area are located in San Francisco, Palo Alto, North San Jose and Santa Clara.