By Jon Peterson
A joint venture of Spieker Investments and Keech Properties has closed on the acquisition of Hacienda Terrace, a 302,000 square foot office property, in Pleasanton. The purchase price was $58 million, as stated in public records.
The sales price on the property did come in a little bit below projections when the asset was put up for sale last fall. Belmont-based Embarcadero Capital Partners was the previous owner of the property. According to multiple sources, the asset was placed up for sale with the hope of a sales price of around $70 million. The listing agent on the sale was Eastdil Secured.
The new ownership will be able to add some value to the asset. When the property was sold, it had a current occupancy in the mid-70 percent range. This would allow for more income to be generated by leasing up some of the property’s vacant space. One of the more significant tenants still in the property is ServiceNow. Overall, the property has a mixture of technology, life science, legal and health industry type of tenants.
Hacienda Terrace has a total of three office buildings that were first constructed in 1985. Its addresses are 4301, 4305 and 4309 Hacienda Drive. All of the buildings are considered to be mid-rise buildings on a two-story podium. The roof level of the podium is finished as an outdoor common area and there are additional outdoor terraces on the upper floors. One of the property’s amenities is an on-site café.
The office complex is part of the 875-acre mixed-use complex known as the Hacienda Business Park. This area has a total of 11 million square feet of a combination of office buildings, retail and residential real estate. Hacienda Terrace is located a four-minute shuttle ride from the Dublin/Pleasanton BART Station.
The Pleasanton office market has seen a dip in vacancy since the start of the pandemic, according to data compiled by Colliers International. Vacancy rates increased 3.7 percent to 14.6 percent from a year ago. There is also an additional two million square feet of direct and sublease space on the market. Currently, the total square footage of Class A space in Pleasanton is 6.8 million square feet.