By Jon Peterson
Milpitas-based Nome Capital Partners is finalizing the acquisition of the under-construction 126,700 square-foot office building in Alameda located at 1310 Harbor Bay Parkway. The anticipated sales price on the property is $87 million, or just over $686 per square foot, as stated by sources familiar with the sale of the property.
The planned sale on the property will not close until August, which is primarily due to the fact that the property is still under construction and the new owner will not take title to the property until the developer is finished and the tenant has occupied the space.
The seller of the asset is a joint venture between Dallas-based Hillwood and srmERNST Development Partners, based in Oakland. The listing agent on the sale is JLL, which is leading the sales effort through Adam Lasoff, a managing director in capital markets for the company. JLL declined to comment when contacted for this story.
Construction of the building is projected to be completed in July. The property will be 100 percent leased to Penumbra, a publicly traded global healthcare corporation that designs, develops and markets innovative medical devices.
The lease with the tenant will start in July and run for 15 years, and it includes 3 percent annual rent increases. The property is constructed as a build-to-suit. $15.8 million has been invested in tenant improvements that will feature high-end finishes, ample conference and break out rooms, an onsite coffee bar and perimeter offices surrounding the two floors of the property. The property will also have a parking facility that will hold 388 spaces.
Since the onslaught of the COVID-19 pandemic, this kind of asset has been attracting perhaps the most capital and investment interest, according to industry sources. Properties that have long-term leases to a single-tenant with strong credit have been the darlings of investors over the last year. This scenario provides less concern about any leasing issues compared to multi-tenant properties with shorter leases, which garnered more interest prior to the pandemic outbreak.
The new building is part of the greater Harbor Bay Business Park, a 325-acre master-planned business park that is home to over 100 companies. Other firms in the park include Exelixis, Abbott, ABB and AllCells. Penumbra already occupies 217,000 square feet at the park at its headquarters building. The new lease at 1310 Harbor Bay Parkway is considered an expansion for the company.