By Meghan Hall
After nearly seven years of ownership, Rockpoint Group has sold a Redwood City office asset. In a deal that closed in February, the firm sold several buildings to Center Capital Partners for $82.8 million, or about $575 per square foot. The deal was first reported by The Mercury News.
The buildings are located at 1 Twin Dolphin Drive, 3 Twin Dolphin Drive and 100 Marine Parkway. Public records show that Rockpoint originally purchased the assets in May of 2015 for $65.55 million. In all, the buildings total about 144,000 square feet.
The campus is located just off of Highway 101 and is near the Redwood Shores Lagoon. Oracle has offices nearby, as does Electronic Arts, Curion Insights and the San Mateo County Office of Education.
The Peninsula office market has been slower to recover in the wake of the pandemic; a fourth-quarter report by Cushman & Wakefield noted that the combined office and R&D vacancy rate at the end of the year was 10.1 percent–unchanged from the third quarter and just a small decrease from the fourth quarter of 2020, in which vacancy sat at 10.2 percent. Vacancy is expected to rise further in the market as 514,000 square feet of space will be delivered, of which 63.8 percent is pre-leased.
However, space is being leased. New leasing activity did top one million square feet last quarter, bringing gross absorption to 6.9 million square feet. This is not too far from 2019’s gross absorption of 7.9 million square feet. Most of the activity, states Cushman & Wakefield, is the result of the “red-hot” life science market. In the future, the Peninsula market is expected to grow, as it currently is less expensive than South San Francisco and Silicon Valley, making it an attractive market to growing companies.