Workday Adds One More to Its Burgeoning Pleasanton Campus Holdings

Workday, Pleasanton, East Bay, Bay Area, Safeway Inc, Vons Cos, Stoneridge Corporate Plaza, Nevada Pacific Holdings, Cerberus Capital Management
Workday, Pleasanton, East Bay, Bay Area, Safeway Inc, Vons Cos, Stoneridge Corporate Plaza, Nevada Pacific Holdings, Cerberus Capital Management

By Brett Goetschius

East Bay human resources management services firm Workday has moved a step closer to realizing its plan to create a headquarters campus adjacent the West Dublin BART station and Stoneridge Mall in Pleasanton. Several sources close to the company have confirmed that Workday has contracted to acquire a 209,000 square foot office property at 5928 Stoneridge Mall Road owned by Safeway, Inc.

The purchase, which is expected to close in August, is the second office purchase in the Stoneridge Mall area by publicly traded Workday since March when the company paid $14,525,000, or roughly $124 per square foot, for a 116,740 square foot four-story building at 6000 Stoneridge Mall Road owned by Safeway subsidiary Vons Cos. Workday reportedly will pay a similar per-square-foot price for the 5928 property, or about $47 million. The company did not respond to requests to confirm the purchase.

[contextly_sidebar id=”XNoWY53k2KcUcb0F0uHTM5TcVz9aZ41v”]The two acquisitions augment Workday’s revised proposal, approved in April, to build a 410,000 square foot “development center” near the buildings on a 6.9-acre parcel presently owned by BART and adjacent to the five-building, 570,000 square foot Stoneridge Corporate Plaza, which was purchased in 2013 by Nevada Pacific Holdings, the real estate investment vehicle of Workday’s co-founder and chairman Dave Duffield.

Together with Workday’s current 300,000 square foot headquarters at 6230 Stoneridge Mall Road, the proposed development and acquired adjacent buildings will create a 1.6 million square foot corporate campus for the 5,200-employee company, with direct pedestrian access to the West Dublin BART station and on-ramps to the I-580 and I-680 commuter arteries. The company has indicated that more than 5,000 employees could eventually join the 1,400 employees currently working at the Pleasanton headquarters.

The new acquisition at 5928 Stoneridge Mall Road is a five-story building with 47,000 square foot floor plates, built in 2001 on a 67,000 square foot lot fronting I-580. Unlike Workday’s previous purchases, the property is not contiguous with the company’s other properties, with the Sheraton Pleasanton hotel situated between it and the BART parcel where Workday plans to build its main headquarters building, dubbed the Development Center. Project architect Gensler has designed the building to attain LEED Platinum certification. It and its adjacent parking garage were approved by the Pleasanton planning commission on April 13.

Safeway, which was acquired by private equity firm Cerberus Capital Management and merged with Albertson’s in early 2015, is in the process of moving its headquarters to Boise, Idaho. The company expects to keep a smaller regional headquarters presence in Pleasanton.

West Coast Commercial Real Estate News