Belmont-based Embarcadero Capital Partners sold the 150,000 square foot 1301 Shoreway Road office building in Belmont for $61 million, or just over $406 per square foot, according to public records. The sale closed in early October of 2016. The buyer was San Mateo-based Westlake Realty Group.
As The Registry had reported in July of 2016, the expectation was that the property could be sold for a price of $375 to $400 per square foot or somewhere in the range of $55 to $59 million, according to sources familiar with the sale of the asset.
The seller has the property up for sale through the San Francisco office of Eastdil Secured. Both the seller and listing agent declined to comment on the sale of the property at the time.
Embarcadero Capital has owned the asset for 11 years. The company is currently actively leasing up the property according to its Web site; one of its more noticeable tenants is Irvine-based Tex-X, the real estate auction Web company, which houses its Silicon Valley office in the building. The property, which was first developed in 1984, is a one-building property that covers four stories, each with 30,000 square foot floor plates. On-site amenities include a conference room, café, fitness center, basketball court and electric vehicle charging stations.
The property was expected to attract a mixture of core to core plus kind of investors, according the sources. There will be a chance for the new ownership to create some value in the asset going forward. This will be accomplished by bringing the existing rents up to market where the existing leases come up for renewal.
1301 Shoreway Road is located within the Redwood Shores submarket for office space. This region remains fairly tight. According to data from Cushman & Wakefield, the vacancy rate in the sub-market is 8.7 percent through the second quarter of this year. One of the reasons for this strong result is that there are no new office developments under construction at this time in this Peninsula sub-market. Redwood Shores has a total of 6 million square feet of office space with an overall average asking rent of $4.75 per square foot full service.