By Jon Peterson
San Francisco-based Strada Investment Group and New York City-based Angelo Gordon & Co. have acquired Waters Technology Park I, II and III in San Mateo for around $45.7 million, according to sources that track the sale of office buildings on the Peninsula and public records viewed by The Registry. The three buildings total approximately 165,000 square feet, making the per square foot purchase price around $277.
Strada and Angelo Gordon did not respond to phone calls and e-mails seeking comment for this story.
The seller of Technology Park I and II properties was Boston-based TA Associates. The real estate investment firm was represented in the transaction by Cushman & Wakefield. The listing agent on the sale was Eric Fox, an executive managing director in the San Jose office. He declined to comment when contacted for this story.
According to public records, TA had owned the assets for its commingled fund Realty Associates Fund VIII. The company had acquired the property for $27.35 million in 2007. It sold to Strada and Angelo Gordon for $29.5 million. The assets were being sold due to the fact that this commingled fund was at the end of its life term, and the fund is at a liquidation stage.
TA had placed the assets on the market for sale in the summer of 2016. The occupancy at that time was 87 percent. The current vacancy stands at 85 percent. The property is leased by a mixture of technology and traditional office space users. A main tenant in the asset is Adap.tv, an entity controlled by Verizon Communications. It has a lease of 38,000 square feet that lasts until February of 2019.
The area around Waters Park property is made up of many residential assets. There could be a scenario in the future to redevelop the property into a residential asset, according to sources familiar with the location and its surroundings.
These two buildings were sold at the same time as another asset in Waters Technology Park. This was Building III, which was also acquired by the Strada/Angelo Gordon team. This asset has totals around 64,000 square feet. The seller was Petaluma-based Cornerstone Properties. The listing agent on the sale was Grant Lammersen, vice chairman and co-head of commercial capital markets of Northern California for Newmark Grubb Knight Frank. He did not respond to phone calls seeking comment for this story.