By Meghan Hall
A fully-leased tech campus in Fremont has traded hands as investors continually look to the East Bay for opportunity. The Campus @ Ardenwood has been purchased by Alloy Properties, a subsidiary of TPG Real Estate Partners, for $140 million, or just over $433 per square foot. The seller was affiliated with Deutsche Bank, according to The Mercury News, who first reported on the deal.
The property is located on Kaiser Drive and was originally purchased by Deutsche Bank in 2018 for $73.3 million. In all, the four-building asset totals 323,000 square feet. At the time, Deutsche purchased the property from Digital Realty.
The Campus @ Ardenwood is leased to a number of firms, including SportsMedia Technology, Logitech and others. Other companies, including Facebook–which expanded its Fremont footprint with 226,000 square feet of new leases in December of 2020–TE Connectivity and Philips are located nearby.
Fremont’s proximity to Silicon Valley and its cheaper, East Bay prices have made the town popular amongst both tenants and investors in recent months. In April, Kennedy Wilson purchased the Fremont Research Center for $32.3 million. Shortly after, BentallGreenOak acquired the Ardenwood Research Center for $51.3 million.
Demand for tech- and life-sciences oriented spaces has been expanding down the I-880 corridor in recent months, according to data released by Cushman & Wakefield. Rents in and around the East Bay have increased to $4.46 per square foot year-over-year, even though the East Bay office market posted a vacancy rate of 17.% at the end of the second quarter. However, new construction accounted for vacancy rises, as well as smaller office tenants re-evaluating their need for space. Moving ahead, office requirements are rising, and expansion into alternative markets such as Fremont are likely to continue.
As of this writing, TPG had not yet returned The Registry’s request for comment.