Marin County Pension Fund to Sell Office Building in Foster City

Marin County Pension Fund, Foster City, Commercial Real Estate News, Woodmont Real Estate Services, East Bay, Peninsula, Pleasanton, San Bruno, Sunnyvale
Century Plaza

By Jon Peterson

The Century Plaza office building in Foster City will be going on the market next month.

The Marin County Employees’ Retirement Association plans to sell the 115,000-square-foot property, located at 1065 East Hillsdale Blvd.

“This property has a current value of $33 million. This will be the first of six properties that we will be selling out of our separate account portfolio that is currently managed by [Belmont-based] Woodmont Real Estate Services. We will let this manager decide when the other assets in the separate account relationship will be sold in the future,” said Jeff Wickman, retirement administrator for the pension fund.

The six properties in the portfolio had a total value of $129.2 million. These assets are spread out in the Bay Area, including near San Francisco, the East Bay, the Peninsula and Silicon Valley.

The other five properties are the 150-unit Woodland Villas Apartments located at 4320 Valley Ave., in Pleasanton; the 65,300-square-foot Swift Avenue warehouse property located at 345-367 Swift Ave., in South San Francisco; the 124,000-square-foot Airport Trade Center office/warehouse at Sneath Lane and Cherry Avenue in San Bruno; the 9,942-square-foot Marina Bay Business Center R&D facility located at 1000, 1050-1090 Marina South, 1101-1121 Regatta and 1430-1470 Regatta, in Richmond; and the 32,800-square-foot R&D facility located at 1190 Borregas Ave., in Sunnyvale.

The proceeds for the sale of the properties will be reinvested in real estate.  There will be future $50 million commitments each made to the AEW Core Property Trust and the UBS Trumbull Property Fund. These are both core open-ended commingled funds that are always open to new investors.

Boston-based AEW Capital Management manages the Core Property Fund.  The Trumbull Property Fund is run by Stamford, Conn.-based UBS Realty Investors.  Most of the capital in these commingled funds is used to acquire a mixture of well-leased office, industrial, retail and apartments around the country.

Marin County Employees’ already has a history of investing capital in both commingled funds.  The pension fund first established a relationship with the Core Property Trust in 2013.  It made two commitments totaling $65 million into the commingled fund in 2013.  The investor has placed a value on this investment of $68.5 million.

The pension fund also made two commitments to the Trumbull Property Fund.  Its first commitment was for $15 million in 2011 and a second one of $50 million was approved last year.  The value of this investment is $16.7 million.

“This value is lower because the commitment in 2013 had not been called by the manager as of the end of June 2013.  We expect that this capital will be called by the manager in October.  We think our new commitment will be taken down by UBS over the next six to eight quarters,” Wickman said.

West Coast Commercial Real Estate News