By Jon Peterson
San Francisco-based Rubicon Point Partners has acquired the approximately 300,000 square foot San Mateo BayCenter in San Mateo for approximately $154.4 million, or $515 per square foot, according to sources that are aware of the transaction. The buyer declined to discuss the purchase price of the story when contacted.
Rubicon purchased the assets in a joint venture with Canyon Partners Real Estate. The purchase is the partnership’s sixth acquisition through the Canyon Catalyst Fund, the CalPERS real estate emerging manager program, which is managed by Canyon Partners Real Estate, according to a statement from Canyon.
“I think that this property is one of the highest quality office assets in San Mateo. This is with the physical quality of the space itself and its centralized location so that employers can attract new employees from all parts of the San Francisco Bay Area,” says Ani Vartanian Boladian, a managing partner with Rubicon in San Francisco.
The seller of the property was Boston-based The Rockpoint Group. It had sold the asset through NGKF Capital Markets and HFF out of their San Francisco offices. The people involved were Steve Golubchik, Edmund Najera and Ben Bucci at NGKF and Michael Leggett at HFF.
San Mateo BayCenter is located at Baker Way and 901/951 Mariners Island Blvd. The property was 85 percent occupied when the sale was completed. “I would call this a value-add opportunity for our company. There is one major space that is available in the building located at 999 Baker. A tenant recently left the building making this building only 40 percent occupied,” said Vartanian Boladian.
The leasing efforts on the property will be done by Cushman & Wakefield. One of the people involved with this will be Mike Moran, a managing principal in the company’s Burlingame office. “Rockpoint did an amazing job in upgrading the lobby. Many of my clients have come into the lobby just to take a look at it,” said Moran.
San Mateo BayCenter was first developed in 1982 and 1987. The renovation of the asset took place in 2015 and 2016 by Rockpoint. This complex offers tenants a lower priced alternative versus other parts of the San Francisco Bay Area. “Rents in our property can be as much as 20 percent less than other parts of the Bay Area including San Francisco,” said Vartanian Boladian.
The complex also features great connectivity to the region via access to major east-west and north-south thoroughfares. The complex is a two-minute shuttle drive from Caltrain and sits close the US 101 and CA Highway 92 intersection.