Lane Partners Buys Office Building in Walnut Creek for $15.3MM

Lame Partners. Station Plaza, Walnut Creek, Thomas Properties, Newmark Knight Frank, Bay Area, Peninsula, Silicon Valley, East Bay, Oakland

By Jon Peterson

Menlo Park-based Lane Partners has acquired the 49,524 square foot Station Plaza office building located at 3100 Oak Road in Walnut Creek for $15.3 million, or nearly $309 per square foot, as stated by sources that track the sale of office buildings in that market.

Lane Partners would not comment as to the purchase price of the asset. “This is our only Walnut Creek property that we currently own. The asset that we bought is located only a short distance away from a BART station, which makes it attractive,” says Nick Menchel, an associate at Lane Partners.

The seller of the property was Walnut Creek-based Thomas Properties. The company had selected Newmark Knight Frank as the listing agent on the sale. They, too, declined to state the sales price on the property.

“Located just two blocks from the Walnut Creek Pleasant Hill BART Station, Station Plaza benefits from the increased critical importance of public transportation to tenants today. This should prove to be a great asset for Lane Partners, particularly once they complete the improvements planned for the property,” said Forrest Gherlone, senior managing director in a prepared statement. He worked on the deal along with Grant Lammersen, vice chairman, and Tim Walling, director.

The office building was 94.2 percent leased to 16 tenants at the time of the sale. The types of tenants in the property include financial, healthcare, legal, consultant and government businesses. The property was first developed in 1987 by Thomas Properties.

The net operating income of the property could be increased in the near future, stated the sources. Around 63 percent of the property’s current tenants will come up for renewal in the next 36 months. The current weighted average rent in the property is in the neighborhood of 40 percent of where market rents are presently.

The Walnut Creek office market remains a lower priced alternative to other office markets in the Bay Area like San Francisco and Oakland from a rental rate standpoint. According to NKF, the asking rent discounts between Walnut Creek and San Francisco are at 41 percent and 22 percent to Oakland.

Lane Partners is known as a buyer of mostly office buildings and also some mixed-use and residential properties. It looks to a buy a variety of markets in the Bay Area including Silicon Valley, the Peninsula, East Bay and Oakland.

West Coast Commercial Real Estate News