By Jon Peterson
San Francisco-based Rubicon Point Partners has placed on the market for sale two office buildings that are part of the San Mateo Bay Center property. The potential pricing on the assets is $160 million, according to sources familiar with the planned transaction.
The real estate investment firm declined to comment when contacted about the sale. The listing agent on the sale is the San Francisco office of Newmark. A lead person on the sale is Steve Golubchik, a vice chairman with the firm. Newmark did not respond to an email seeking comment for this story.
Rubicon has been the owner of the office complex since 2016. It had paid around $152 million for the three building-asset in 2016, according to public records. The building located at 999 Baker Way is not part of the planned sale.
The two buildings that are part of the sale are located at 901 and 951 Mariners Island Boulevard. They have a total of 245,563 square feet. The assets currently are 88 percent occupied. Two of the existing tenants in the property include Marketo and Sares Regis Group, according to both of the firm’s websites.
The property will have a potential leasing opportunity and conversion to a life science asset. There is 198,680 square feet of that can be rolled over in the first three years of new ownership if the buyer wants to create a life science asset.
The two buildings have seen $17 million of capital invested in the property over the past six years. The improvements have included a new gym, café, outdoor amenity areas, roofs, lobby upgrades, HVAC renovation, elevator modernizations and parking lot re-surfacing.
There seems to be a lot more demand for life science space than there is room to accommodate the tenants in the San Francisco Peninsula market, according to industry sources. Over the next two years, there will be additional availability of only 589,902 square feet. The current tenant demand in the market for this space in this submarket is reaching 3.1 million square feet.
Rubicon had acquired San Mateo Bay Center in a joint venture with Los Angeles-based Canyon Partners Real Estate as part of the Canyon Catalyst Fund. This is the emerging manager program that has been established by the California Public Employees Retirement System (CalPERS).