By Jon Peterson
Atlanta-based Jamestown has acquired the 600,000 square foot 2000 and 2001 Clayton Road office building assets in Concord for $118 million, or just around $196 per square foot, according to sources that track the sale of office buildings in the East Bay.
Jamestown, which has been an active player in the greater Bay Area commercial real estate market overt the last few years, did not respond to phone calls seeking comment for this story.
The seller of the two buildings was San Francisco-based DivcoWest Properties. The listing agent on the sale was the Bay Area Capital Markets team for JLL. Both DivcoWest and JLL declined to comment when contacted concerning the sale.
DivcoWest had been the owner of the two office buildings since 2012. The real estate investment firm had paid $94 million, or around $156 per square foot, for the properties then, when it was purchased for its DivcoWest Fund III commingled fund. This is one of the last assets remaining in the fund for which DivcoWest had raised a total of $871 million when it completed its capital raise in 2012.
Both properties in Concord are considered Class A assets. 2000 Clayton has no vacancies. All of the 395,914 square feet is leased to Bank of America, which has a lease that runs through July 2023.
Jamestown will have an opportunity to add some value to the other building. 2001 Clayton was only 25 percent occupied when the property was put up for sale earlier this year. The only tenant in the building at that time was Wells Fargo, which leases two floors in the building and will remain in the building until October 2027.
The buildings have a strong location for both mass transit and walkable downtown amenities. The two buildings are situated directly adjacent to the Concord BART station. This is an important fact as office buildings near BART or Caltrain stations do attract a rent premium in this and other submarkets across the region. BART-adjacent buildings in Concord have a vacancy of 18.8 percent and rents of $2.95 per square foot on a triple-net basis versus a 28 percent vacancy and rents of $2.56 triple-net for buildings no near BART, according to JLL’s marketing materials for the property.
Jamestown’s main investment entity is its Jamestown Premiere Property Fund. This is a core/core plus open-ended commingled fund that looks to buy a mixture of office and retail assets in a variety of markets around the United States. The Atlanta-based real estate investment firm does have a regional office in San Francisco at 1700 Montgomery Street, according to its website.