By Jon Peterson
Stockbridge Capital Group and Wilson Meany are planning a new office project at its mixed-use development Bay Meadows in San Mateo. This planned project will be occupying what is referred to as Parcels 2 and 3.
“We are now in the site plan approval process with this part of our development. It’s our expectation at this time that if everything moves forward as planned that we would start construction in late 2021 and the project would be delivered to the marketplace in late 2023,” says Janice Thacher, a partner with Wilson Meany in its San Francisco office.
The long-range timing of this new project should allow the two companies involved some leeway and time to evaluate any potential changes that might need to be made to the design due to the market uncertainty caused by COVID-19. “I think at this time it’s too early to know the true impacts of the virus,” says Kristin Paul, a managing director in the firms San Francisco office.
Although therapies and a cure for the virus are some ways off, the developer anticipates a resolution that would bring public transportation and occupancy at levels prior to the virus. “The completion and occupancy of these new buildings is still a couple of years off. We anticipate that there will be a vaccine prior to that time, which will make public transit and other social gathering in gym and restaurants to return to pre-COVID operations.” said Thacher. “Nonetheless, Bay Meadows has a network of heavily used bike paths and adequate parking to facilitate a variety of modes of transportation.”
The planned development of parcels 2 and 3 will be of a mixed-use nature. The largest aspect of the development will be an office component totaling 287,117 square feet. This asset could be leased either to a single tenant, or the space could be taken by two or three tenants. The likely targeted audience for this space would be either technology tenants.
The project also has plans for 6,040 square feet as a mixture of retail/active use.
Finally, Parcels 2 and 3 will be adding a residential portion to the development. This will total 57 units with 10 percent of the units slated as affordable while the balance would be comprised of market rate units.
Stockbridge and Wilson Meany did start in February of this year on another part of the Bay Meadows project. This was two office buildings located at Stations 1 and 5 where a total of 433,000 square feet will be developed.
Station 1 is a 219,000 square foot office asset located at 2750 South Delaware Street. Station 5 property is for 214,000 square feet, which is located at 3150 South Delaware Street. Both of these buildings are adjacent to the Hillsdale Caltrain stop. The office space in these properties is available for lease by Newmark Knight Frank and will be ready for occupancy in the first quarter of 2022.