This Week's Bay Area Deal Sheet
Pacific Gas and Electric Co. agreed to buy its 910K SF headquarters at 300 Lakeside Drive in Downtown Oakland. The investor-owned utility exercised an option to buy that was part of a lease it signed in 2020.
TMG Partners sold the tower, which formerly housed the headquarters of Kaiser Permanente, after paying $450M for it in 2020. The lease with PG&E offered the utility the option to purchase the property for $892M, or $980 per SF, according to the San Francisco Business Times.
SALES
Tishman Speyer bought a 2.9-acre industrial site in San Francisco for about $33M. The site is at 2225 Jerrold Ave., near the Bernal Heights neighborhood.
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Prologis bought a 110K SF industrial site at 6212 Hellyer Ave. in San Jose for $38M. The building is called the San Jose Industrial Center and already has a tenant in Varian Medical Systems.
LEASES
RK Logistics pre-leased 200K SF of warehouse space at the Fremont Elm Business Center, representing the second-largest lease in Silicon Valley during the second quarter. The building is at 47020 Kato Road in Fremont.
CONSTRUCTION
Costco plans to start construction on a 154K SF store with a parking lot and 16-pump gas station in the East Bay's Brentwood. The approval was initially obtained in June, but West Coast Home Builders appealed the decision. That appeal was denied, paving the way for the new location of the retailer as it seeks to capitalize on the rapid growth in the Brentwood area.
THIS AND THAT
Farallon Capital Management, a San Francisco-based capital management company, announced the closing of its fourth U.S.-focused real estate fund. Farallon has been investing in commercial real estate for 30 years.
