By Jon Peterson
With recent East Bay commercial real estate transactions hitting new heights, NDG Real Estate has decided to test the market with a property in Berkeley it just placed on the market. The company, which has a San Francisco office on Van Ness Avenue, has placed the vacant office property located at 2120 Berkeley Way with pricing guidance on the asset reaching $30 million, or around $660 per square foot, according to sources that are familiar with the property.
The seller has selected the San Francisco office of JLL to be the listing agent on the transaction. Those working on the sale are Erik Hanson and David Dokko, both senior directors. JLL declined to comment when contacted fort his story.
The expectation is that the empty property could be leased up to either a life science tenant or traditional office occupancy. The first three floors of the property had been the home of UC Press. This part of the property has gone through a full renovation and seismic upgrade, including floors four through six, which were developed by the seller over the past couple of years. This asset represents one of a limited number of privately-owned new construction properties in Berkeley in the past 20 years.
2120 Berkeley Way has a total square footage of 45,471 square feet. It sits on roughly 0.2 acres of land. The asset could be leased to single or multiple tenants in the future. The property has a very strong location, since it is only one block from the UC Berkeley campus.
The Berkeley office/life science market remains very tight. Through the second quarter of this year, there was a total of 2.6 million square feet in the market with a current vacancy of 1.9 percent, according to sources that track this data.
These dynamics, which are similar to the ones across the region, point to a reasonable expectation for the new ownership to convert the property to a life science asset. Tenant demand in the region is currently 4.2 times the amount of existing availability, as stated by sources that track the life science market in the Bay Area.