Paceline Investors and True North Management Group recently acquired in an off-market transaction a 128,493 square-foot, two building campus in Alameda’s Harbor Bay Parkway located at 1600 and 1650 Harbor Parkway for $33.5 million (just under $261 per square foot). The seller was the Cal Worthington Trust based out of Sacramento.
The two buildings were both built around 2000, are multi-tenant with a current occupancy level of 62% and have an existing mix of office and lab tenants. The partnership was attracted to the buildings because of their recent construction, 15 foot deck to deck heights, significant power, and window lines in a submarket that has increasingly become desired by life science, medical device and other lab oriented tenants led by Penumbra, Exelixis and Abbot Labs. The submarket is accessible regionally from the 880 freeway, by ferry to and from San Francisco and South San Francisco, and there is shuttle service to and from the BART system.
The buyer plans to execute a physical improvement program on each building‘s common areas and building systems while preparing the existing vacancies for lease as many have not been updated since their last tenants. Upon completion, the partnership expects to lease to a combination of office and lab tenants that are attracted to the environment of the Harbor Bay Business Park and its occupancy cost structure relative to competitive submarkets.
The seller and buyer were represented by CBRE’s Mike Keely and Mike Raffetto. This CBRE team will continue to lease the property going forward.