Thor Equities Buys Redwood City Property for $58MM

By Vladimir Bosanac

The Peninsula market continues to gain traction in the commercial real estate landscape of the Bay Area, as the connectivity of the submarket positions it well between the San Francisco and Silicon Valley markets. As a sign of growing interest in the region, New York City-based Thor Equities purchased an 81,000 square-foot asset on the Peninsula for $58 million, or just around $711 per square foot, according to a report by brokerage firm Kidder Mathews. The seller was a joint venture between Rockpoint Group and Premia Capital, which had owned the asset since June of 2014 when it paid for $22.5 million, according to public documents.

The building located at 130-150 Shoreline Drive, is situated in the Redwood Shores neighborhood of Redwood City. The property is across the street from the Pullman San Francisco Bay Hotel, formerly the Sofitel. According to a brochure from Hines, which owned the building at one point, the building features open floor plans, and it has a free shuttle service to the Redwood City Caltrain station.

According to Commercial Cafe, the building is offered $4.50/square foot/month. There is no indication how up-to-date the information on the web site is, but it is showing the building as vacant. This would imply the new owners are looking for a value-add opportunity with the property once it is leased up to market rates. Industry reports from Colliers International place the peg the Peninsula average asking rents in November of 2017 at $5.10 and $5.00 in December.

Colliers International pegs the Peninsula market at 7.1 percent vacant in December of 2017, which is up from 6.86 percent from a month earlier. The office market saw an average amount of transactions during the month of December, stated the report; the most significant deal was Guidewire Software’s direct lease of Wison Meany’s entire Station 2, consisting of 189,000 square feet of office space, at Bay Meadows Station at 2850 S. Delaware Street in San Mateo.

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