New York Life Buys San Mateo Office Park for $49MM

San Mateo, ACCO, Bridgepointe, Cushman & Wakefield, Commercial Real Estate News, NGKF, BGC Partners, Newmark Grubb Knight Frank

San Mateo, ACCO, Bridgepointe, Cushman & Wakefield, Commercial Real Estate News, NGKF, BGC Partners, Newmark Grubb Knight Frank
Bridgepointe Office Park, a 130,000 square foot office complex in San Mateo built in 1982 has reportedly sold to New York Life Real Estate Investors for $49 million, or $376 per square foot. The seller was a partnership led by Harvest Properties, which has owned the building since March of 2007, when it was purchased for $42 million, or $323 per square foot.

The office park comprises of two, three-story, class A office buildings, which according to recent reports by brokerage firm Newmark Cornish & Carey was nearly three quarters full. Only five open leasing opportunities remain in the property totaling nearly 30,000 square feet, and asking rents for each of the open suites are at $4.15 per square foot.

The location sits along the active 92/101 Corridor and boasts great connectivity to the Silicon Valley as well as East Bay. The San Mateo and Hillsdale Caltrain stations are each within a few miles of the property, as well, although this proximity to mass transit does not necessarily provide easy access to the train system, since Bridgepointe is primarily accessible via cars.

The property, located at 1500 and 1510 Fashion Island Blvd., is home to Randstad US, Kelly Services, Inc., Act-On Software, 11Main, Inc. and FirstRain. Newark Cornish & Carney announced last September that the firm also helped sign ACCO Brands to a 22,164 square foot lease at 1500 Fashion Island Boulevard, which was its last large lease signed in the property.

Harvest Properties also owns the two buildings across the street, located at 1400 and 1450 Fashion Island Blvd. The 275,551 square foot Century Centre I & II buildings were purchased by Harvest in April of 2014 for $99.75 million, or $362 per square foot. Harvest acquired the property at a mid-single-digit cap rate in a joint venture with Chicago-based LaSalle Investment Management. “The cap rate was in the low to mid 5 percent range. This return is based on where the existing income in the property will be over the next 12 months,” Tom Wagner, a partner with Harvest Properties said at the time of the purchase.

At the time, this property was 93 percent occupied. “The average in place rents in the property are now at $2.55 per square foot on a gross basis. This makes them approximately 40 percent to 50 percent below market,” said Wagner last April.

Since that time, the market has continued to improve, and the average asking rate for class-A office space in San Mateo, according to a Q1 2015 Colliers International San Francisco Peninsula Research & Forecast Report, was at $4.29. Total vacancy for this type of office space in San Mateo is 6.91 percent, according to the same report, which is down roughly 9 percent from 7.54 percent the previous quarter.

West Coast Commercial Real Estate News