Sunset Development Pays $174.5MM for Chevron’s Campus in San Ramon, Takes $157MM Loan from Chevron to Finance Deal

San Ramon Bishop Ranch Related California SummerHill Homes Sunset Development Skidmore Owings & Merrill NBBJ SOM MetLIfe Investment Management Chevron Park

Chevron Signs Lease for New San Ramon Office

(EDITOR’S NOTE: According to a report by the San Jose Mercury News, Sunset Development paid $174.5 million, to buy Chevron’s 1.3 million square foot campus. The company also obtained a loan from Chevron to finance the acquisition of the asset.)

San Ramon, Calif. (Sept. 28, 2022) – Sunset Development announced today the purchase of Chevron’s 92-acre, 1.3-million-square-foot “Chevron Park” campus located within Sunset Development’s 600-acre, mixed-use downtown of Bishop Ranch, plus the signing of a nearly 400,000-square-foot lease that keeps Chevron’s global headquarters in San Ramon.

Chevron’s new headquarters will be located within BR 2600, a 1.8 million-square-foot office building owned by Sunset Development with MetLife Investment Management, designed by the integrated architectural and engineering firm Skidmore, Owings & Merrill (SOM). The new Chevron space can accommodate up to 2,000 employees and construction is expected to be complete in late 2023. Chevron has enlisted notable architecture and design firm NBBJ to design a reinvented workplace to suit their current needs.

Chevon purchased the original 92-acre “Chevron Park” in the early 1980s directly from Sunset Development, a family-owned and -operated company founded by the Mehran family. Over the last 20 years, the Mehran family has been transforming Bishop Ranch into what will become a $5 billion mixed-use, walkable Bay Area neighborhood over the next decade. This purchase signals yet another step towards that evolution.

“It’s exciting to reacquire this important piece of land from our largest- and longest-standing customer we started with over 40 years ago. This parcel is at the gateway to Bishop Ranch and will be a key part of our planning as we create a distinct California community,” said Alex Mehran, Jr. “We have now re-acquired the two largest parcels which were sold to Chevron and PacBell when my father and grandfather started Bishop Ranch in 1978. Chevron has been a key partner in developing Bishop Ranch and we are excited to work with them on their evolving needs. It’s thrilling to be leading Bishop Ranch as these original deals turnover and the land and buildings are redeveloped for the next generation.”

“Just as Chevron continually strives to evolve our operating model, we also seek to optimize our real estate portfolio,” said Mary Boroughs, president of Chevron Environment Management and Real Estate Company. “Moving our headquarters to a new, modern leased space nearby provides the opportunity to create an improved employee experience in a more contemporary environment. We look forward to working with Sunset and NBBJ to create a space that will inspire innovation, reinforce our culture, facilitate connections, enhance well-being and build a more inclusive and collaborative community for our San Ramon workforce.”

Bishop Ranch is one of the largest privately-owned, master-planned communities in the U.S., combining office, residential, hotels, retail, restaurants and entertainment. Construction is now underway on three residential neighborhoods by SummerHill Homes that will offer 404 detached houses and townhomes. Plans are also in the works to build the community’s first multi-family project, a proposal by Related California, that will bring nearly 400 luxury apartments, with 15% of the units meeting the city’s affordable housing element, to an undeveloped parcel. Eventually, some 6,000 homes will be introduced along with a new boutique hotel, as well as restaurant and retail options throughout the various neighborhoods.

For more information, visit BishopRanch.com.

About Bishop Ranch
Owned and developed by Sunset Development since 1978, the family-operated company is guided by the long-held vision of making Bishop Ranch a distinct Californian community. Spread across 600 acres in Northern California’s San Ramon Valley, Bishop Ranch is where community, commerce and culture collide to create a thriving, walkable downtown for the city of San Ramon and a significant job center for the region. At its core, the 10-million-square-foot, next-generation workplace is one of the country’s largest office campuses and home to 30,000 employees and a dynamic mix of more than 600 businesses, including Fortune 500 companies, local startups and everything in between. With an award-winning transit program and a deep commitment to sustainability, Bishop Ranch aims to be the largest distributed power generation site in the world with 80% of its energy produced on-site by solar.

The heartbeat of Bishop Ranch is City Center, a $300 million, 300,000-square-foot, open-air shopping, dining and entertainment destination. With its range of nearly 60 distinctive retailers and notable restaurants – including The Slanted Door, LB Steak, Boba Guys and Fieldwork Brewing Company — along with Equinox Fitness, the luxurious LOT Cinema and the inviting public square, City Center is a unique and ever-popular gathering place. From art and music events to a thriving farmers’ market, City Center is the destination for social and cultural experiences.

With an unwavering commitment to build a walkable downtown, Bishop Ranch will soon introduce several distinctive residential communities, eventually numbering some 6,000 homes. Also planned is a new boutique hotel, as well as restaurant and retail options throughout the various neighborhoods. For more information, visit BishopRanch.com.

About Sunset Development Company
Founded in 1951 and owned and operated by three generations of the Mehran family, Sunset Development Company is a real estate development and management company headquartered in San Ramon, Calif. In 1978, Sunset Development purchased Bishop Ranch and, over the course of four decades, grew it into a 600-acre destination where community, commerce and culture collide to create a thriving, walkable downtown for the city of San Ramon and a significant job center for the region. The company is credited with helping make the San Ramon Valley one of the fastest growing parts of the Bay Area and is unwavering in its commitment to create and encourage new ways for people to live and work healthier and happier. For more, visit BishopRanch.com/About/Sunset-Development.

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We are focused on lowering the carbon intensity in our operations and growing lower carbon businesses along with our traditional business lines. More information about Chevron is available at Chevron.com.

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