By Jon Peterson
San Mateo-based Westlake Realty Group has put up for sale the 150,132 square foot 1301 Shoreway Innovation Center office asset in Belmont located at 1301 Shoreway Road. The pricing guidance on the planned sale of the property is $95 million, or roughly $632 per square foot, according to sources that track the sale of office assets on the Peninsula.
The listing agent on the sale is the San Francisco office of CBRE Capital Markets. Those working on the sale include Mike Taquino and Kyle Kovac, both executive vice presidents with the firm. CBRE declined to comment when contacted for this story.
Westlake has been the owner of the property since October 2016. The real estate investment firm had paid $61 million for the asset at that time, according to public records.
The new owner of the property could have two areas where it may be able to add value to the property in the future. One is to lease up the empty space and bring the existing tenants in the property to market. The asset is now 82.4 percent leased to a diverse mix of tenants averaging less than three years remaining on the lease.
There is excess land with the property where in the future a new 300,000 square foot building could be constructed that could cater to life science tenants. The new owner would need to take the land for the new building through the entitlement process.
The existing four-story building was first developed in 1984. Over the years, it has benefited from significant capital improvements like elevator modernizations, HVAC and electrical part replacements, parking lot paving, striping and ADA upgrades, common area carpet replacements and exterior lighting LED improvements. The parking facility at the property has a total of 571 spaces. The asset is located one mile from the Belmont Caltrain station.
By creating a new life science space, the new development would create additional space in the San Francisco Peninsula market where tenant demand far outpaces supply. This is reflected in the fact that the region for life science space has a current vacancy of 1.5 percent with a total inventory of in excess of 23 million square feet, according to sources that track this data. The total amount of space under construction is 1.5 million square feet.