With more than 500,000 SF currently in development/redevelopment and another 500,000-plus SF in the pipeline, Meridian is still aggressively pursuing more value-add general and medical office opportunities throughout California
SAN RAMON, Calif. – Meridian, a full-service real estate developer and owner of general and medical office real estate, is pleased to announce that it has completed the sale of its 104,000-square-foot multi-tenant office building located on 1000 Marina Boulevard in Brisbane, California. The sale price was $39.5 million ($380 per square foot) in an off-market transaction. The buyer was Phase 3 Real Estate Partners of South San Francisco and San Diego.
Meridian acquired the 6-story building, which was built in 1983 on four and one-half acres, in December of 2016. At the time of the acquisition, the building was 92% leased to seven tenants and the in-place rents were approximately 25% below the current market rents. During its ownership, Meridian performed over $2.5 million in property upgrades to the interiors, exteriors and building systems of the building.
According to Meridian’s Senior Vice President, John Moutsanas, “This was Meridian’s largest general office acquisition at the time. We were big believers in the resurgence of the North San Mateo County market, particularly due to the explosion in life science demand, coupled with YouTube’s large presence and expanding footprint in San Bruno. Our strategy proved out.”
Moutsanas continues, “We had certainly planned to hold the building longer and roll our own rents to the increasing market, but our brokers did a great job of alerting us to an opportunity to sell the property to a more life science-centric developer who would be well-suited to reposition the building — which is what they did. Phase 3 Real Estate Partners was wonderful to work with; they were responsive and really knew their business. Their development of the Genesis Towers just down the 101 from this building gave them the insight to sharpen their pencils and make a quick decision.”
CBRE’s Northern California Capital Markets team represented both the buyer and the seller in the transaction.
“Meridian has a healthy pipeline with multiple projects currently in escrow and several completed projects listed for sale in our healthcare business platform,” said John Pollock, Meridian’s CEO. “With approximately 500,000 square feet currently in development/redevelopment, plus another 500,000 square feet in the development pipeline, we are still looking for more. We really have an appetite for land and buildings where we can bring our expertise to bear and create value.”
San Ramon, Calif. based Meridian Property Company is a full-service real estate developer having completed over one million square feet of innovative and integrated commercial office, primarily medical, since its inception in 2000. Meridian’s services are broad in scope, but meticulous in detail — from site evaluation and land acquisition to entitlement and planning to construction and management. Meridian is a division of Marcus & Millichap Company. For more information, see www.mpcca.com