By Jon Peterson
The 350,256 square foot Concord Airport Plaza office complex in Concord is up for sale with potential pricing likely in the range of just under $100 per square foot, according to several sources that are familiar with the property and the office market in Concord. This level of pricing would come in at around one-third of replacement cost for office buildings in Concord.
The asset is located at 1200 and 1220 Concord Avenue. The seller of the property is Radnor, Penn.-based Brandywine Realty Trust. It did not respond to phone calls seeking comment for this story. This is the public REIT’s only remaining asset in the San Francisco Bay Area. The listing agent on the sale is the San Francisco office of Newmark Cornish & Carey, which includes the team of Steven Golubchik and Grant Lammersen, both vice chairmen at the firm, and Edmund Najera, executive managing director, and Tim Walling, associate director.
The property will be losing a major tenant next year when Wells Fargo moves out of the property. This company had signed a lease for 334,000 square feet in 2010 with a term of seven years. Wells Fargo’s departure will leave the property only 25.7 percent occupied, and it will make the property the only 100,000+ square foot, single location asset in the North I-680 corridor that is currently available.
The present status of the property should attract capital sources that are looking for a value-add investment opportunity. This could be a mixture of investment funds with either domestic or foreign capital attached to it. The property was first developed in 1984 and 1985 and it covers 7.94 acres of land. The two buildings in the complex are both six stories, and the asset also has an adjacent garage with 1,194 parking stalls.
The Class A sector of the Concord office market has a current vacancy of 12 to 13 percent. This market is considered a less expensive alternative to Walnut Creek. The rental rates in Concord are typically half of what they are in Walnut Creek. Another difference in the two markets has to do with parking revenue. Parking spaces at office buildings in Concord are free while there is a charge to park at office properties in Walnut Creek.
Wells Fargo made the decision earlier this year to move from Concord Airport Plaza into a different location in Concord. It signed a lease for 285,000 square feet to move into Swift Plaza located at 1655 and 1675 Grant Avenue. These buildings are owned by San Francisco-based Swift Real Estate Partners.