By Jon Peterson
As interest for commercial properties across the greater Bay Area continues to climb, another investor is looking to test the market’s capacity for deal-making. Scottsdale, Ariz.-based Virtua Partners has made the decision to place up for sale the 281,591 square foot Britannia Business Center I property in Pleasanton. The office building has a pricing guidance of $80 million, or roughly $284 per square foot, according to sources aware that the property is up for sale.
The current owner of the property has selected the San Francisco office of JLL to be the listing agent on the sale. Among those involved with the marketing efforts include Erik Hanson and David Dokko, both senior directors, and Rob Hielscher, senior managing director. JLL declined to comment on the sale when contacted for this story.
Virtua has been the owner of the property for roughly six years. The investment firm had acquired the property for $58 million in 2015, according to public records.
The property features a mixture of flexible office, life science and R&D type spaces. It is spread across four buildings that are located at 4125,4155, 4255 and 4385 Hopyard Road. The current occupancy of the property is roughly 67 percent, which translates into approximately 96,000 square feet of vacancy.
There are two main tenants in the property that in total occupy 47.5 percent of the space in the asset. The largest tenant is Teleflex, a global provider of medical technology. It has a lease occupying 26.1 percent of the total square footage of the property. Next in size is ADP, a global leader in human capital management. This firm has a lease for 21.4 percent of the asset. The entire property has 5.25 years of weighted average remaining lease term.
The new owner will have the opportunity to change the overall makeup of the property in the future. The breakdown of the property presently features roughly 63 percent for office/flex space, while the remaining 37 percent is life sciences/R&D space. According to industry sources with knowledge of the asset, there is an opportunity to increase the life science component of the property in the near future, which could enhance the revenue stream for the new owners. The asset already has a life science tenant, DiaCarta, which occupies roughly 11 percent of the property.
Britannia was first developed in 1997 and 1998. The buildings in the complex are either one or two stories, and they are on a land area of approximately 19 acres. The parking operation has room for 1,137 spaces. This asset is located 1.3 miles from the Dublin/Pleasanton BART station.