Monday Properties Buys San Mateo Asset for $25MM

By Vladimir Bosanac

New York-based Monday Properties, an owner and operator of 3.5 million square feet of commercial real estate, made its first Bay Area acquisition recently with the roughly $25 million ($362 per square foot) purchase of a 69,000 square foot building in San Mateo located at 1840 Gateway Drive. The four-story building is about 20 percent leased making this a value-add opportunity for the buyer, according to sources with knowledge of the transaction details.

The seller was Westbrook Partners, which purchased the property in September of 2014 for $22,330,598, or just over $323 per square foot, according to public documents.

“This acquisition is a notable accomplishment for Monday’s West Coast team and highlights our continuing efforts to invest capital in Northern and Southern California major markets,” said Phil Cyburt, managing partner for Monday Properties in a report to the Silicon Valley Business Journal. “We see this as a well-located asset in a high growth market and a unique opportunity to reposition the office building.”

The property was built in 1996, and according to Compstack four companies have leases that roll over the next few years in the building. PNC Bank is in the building until 2019, Futures in Education has its lease expiring the same year, and Barrett Business Services will be in the building until 2021.

The new owners are planning to remodel the building to make the floors of the building resemble creative office space that today represents table stakes for any landlord in the region. The plans call for open-floor design with 14-foot ceilings to accentuate the openness of the space appeal to a modern tenant, electric car charging stations and amenities such as collaborative space.

The plans on the second floor call for a spec redesign, which will include creating smaller suites and some flexible space arrangements, whereas the third and fourth floors will hopefully attract some larger tenants, according to sources. The new owners have retained the Cushman & Wakefield team represented by Mike Moran, Clarke Funkhouser and Chase Novak to help with the leasing efforts going forward.

Cyburt will be leading the efforts the company on the West Coast out of the firm’s Los Angeles office. Before joining Monday Properties, Cyburt was chief executive officer of the Laurus Corporation, a principal real estate investment private equity firm that invests in office, hospitality and retail. He also worked as the managing director of Alvarez and Marsal, served as interim CEO of Lehman Brothers Holdings’ real estate division and as the president of Boeing Realty Corporation.

West Coast Commercial Real Estate News