By Kate Snyder
In a worrying sign for the office market in Mountain View, a three-story commercial building traded hands for almost 50 percent less than what it was previously purchased for. The property was bought for $36 million, or approximately $643 per square foot , by an entity affiliated with JPMorgan Chase, according to a report by The Mercury News. The seller was an entity affiliated with WealthCap Management, which acquired the structure in 2014 for $65 million, property records show.
The 55,956 square foot building was built in 2002 and is located at 303 Bryant Street in the city’s downtown area adjacent to a 400-stall, five-level parking garage operated by the City of Mountain View. Marketing information from CBRE, which was trying to lease the property, shows that a gym and showers were available on site and that the structure included a 91-stall subterranean parking garage. The interior features conference rooms, open office space and 33 private offices across its three stories.
The site is within walking distance of a CalTrain bullet stop and has accessibility to highways 280, 101, 85 and 237. Nearby businesses include CVS, Bank of America and Wells Fargo.
Based in Germany, WealthCap is an investment firm with more than 35 years of investment expertise, according to the company’s website. The firm is a wholly-owned subsidiary of UniCredit Bank AG.
The Bay Area’s office market has been contending with challenges related to the effects of the COVID-19 pandemic, such as the rise of remote work, as well as the ongoing layoffs in the tech sector. A recently released report from Newmark, the San Francisco Market Snapshot, shows that net absorption is still hovering in negative territory and the average asking rents are beginning to slide. Additionally, the city’s 88.5 million square feet of office space has hit a 22.1 percent vacancy rate, according to Newmark, which is up from the previous quarter’s 19.1 percent and up from 16 percent a year ago.