This Week's Bay Area Deal Sheet
A Southern California-based firm leased nearly 200K SF of office space in Silicon Valley.
The Irvine Co. leased 11K SF to venture capital firm LG Technology Ventures at 2755 Great America Way at Santa Clara Gateway. Irvine's portfolio in Silicon Valley is 90% leased, according to a release.
Silicon Valley's office vacancy stands at 19% and asking rents are about $5.40 per SF, according to CBRE.
Irvine recently completed a $10M redevelopment of Santa Clara Gateway that included outdoor tech-connected screens for meetings, an outdoor kitchen with grill station, game tables, new seating and an updated sports court.
SALES
Affiliates of Blackstone sold four industrial properties in the East Bay to New York-based DRA Advisors for $133M, according to The Real Deal. Three of the assets are in Fremont and one is in Oakland. The purchase price breaks down to $312 per SF.
In Fremont, DRA picked up the Fremont Commerce Center, a three-building complex at 41444, 41460 and 41762 Christy St., for $81M. DRA paid $52M for 300 Edgewater Dr., an 81.8K SF asset.
The four-building East Bay acquisition comes on the heels of a buying spree earlier this month in Silicon Valley. In Milpitas, DRA dished out $75M for four buildings at 901, 1001, 1123 and 1151 Cadillac Court. In San Jose, DRA procured 591 N. King Road for $57M and 1721 Rogers Ave. for $17M. Four buildings at 3401, 3501 and 3521 Leonard Court commanded $73M.
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Another out-of-state investor, LBA Realty of Irvine, is reportedly in discussions to acquire 255 California St. in the Financial District for $290 per SF, or in the low $50M range, according to the San Francisco Business Times. Seller Rockpoint bought the 182.5K SF property in June 2019 for $156.5 M, equating to a 66% discount if the transaction closes as expected. It would mark the second San Francisco acquisition for LBA Realty in the city’s “post-pandemic era,” the Business Times reports.
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LEASES
Proptech pioneer Opendoor downsized its San Francisco office by more than half in a move from 303 Second St. to 100 Montgomery St. According to the San Francisco Business Times, it marks the second time in two years Opendoor has downsized its local operations. The firm took up tenancy of the fifth floor of 100 Montgomery in April and will lease the space for two years. At 303 Second St., Opendoor started subleasing 45K SF in the spring of 2022, according to CoStar.
PEOPLE
Julie Rice has been named director of laboratory planning for Cushman & Wakefield. Based in San Francisco, Rice will be responsible for laboratory and business operations. She will plan facilities infrastructure to support the laboratory environment and expand the firm’s relationship between life sciences clients and its life sciences team.
