By Jon Peterson
Palo Alto-based Robert Wheatley Properties has sold the 23,215 square foot office building in Palo Alto located at 445 Sherman Avenue. The asset was sold for $33.8 million, or nearly $1,456 per square foot, according to sources that track the sale of office assets in Silicon Valley.
The seller represented itself, since the sale was an off-market transaction. The buyer of the property is Peninsula Industrial LLC, an entity associated with Debra Holvick, president of Bay Area Industrial Corp., according to public documents. The new owner was represented in the transaction by the Palo Alto office of CBRE. Among those working on the transaction included Alec Haley, Patrick Reilly and Mina Mohamadi. CBRE declined to comment for this story.
This transaction represents one of a limited number of multi-tenant office buildings to trade in Palo Alto, according to industry sources. Much of the recent sales of office assets in the region have been the sale of single-tenant assets.
The seller had owned the property for roughly five years. The last time the office building traded was in June 2016 when it was acquired by the seller for $24.3 million, according to public records.
The new ownership will have a chance to add some value to the property in the future. This is due to the fact that at closing the property was 25 percent vacant. CBRE will be involved in the leasing efforts on the property going forward. This will be dome by Reilly and Mohamadi. The office building was first developed in 1970, and it had been renovated in 2015.
445 Sherman is considered to be a Class A office asset within the Palo Alto office market. This region has very tight vacancy according to data compiled by CBRE. As of the beginning of June, the Class A section of Palo Alto had a current vacancy of 3.9 percent. The total square footage in the region was 3.8 million square feet.