By Jon Peterson
A private buyer in the San Francisco Bay Area has paid $12 million, or $201.6 per square foot to buy the 62,500 square foot office building in Pleasanton located at 5000 Franklin Drive, according to sources familiar with the transaction.
The seller of the property was a San Jose-based family trust. It was represented in the transaction by Bryan Webb, a vice president with Colliers International who works out of the firm’s San Francisco office. “The seller had made the decision that now was a good time to sell property given very strong market conditions, and the trust wanted to move assets into other investments,” said Webb. The seller had owned the asset since 2006. Webb declined to state what the seller had acquired the property for at that time.
The buyer of the property was represented by Erik Hallgrimson, an executive vice president with Cushman & Wakefield.
The cap rate on the transaction was 5 percent. This return is based on the property’s current net operating income. “I would think that the cap rate would be increased to 6.75 percent once the rents in the property are brought up to a market level,” said Webb.
The current rents in the property are at around 45 to 50 percent of market rents. The asset is now 100 percent leased to Saint Jude Medical and D&H Financial.