This Week's San Francisco Deal Sheet
The weekly compilation of the San Francisco Bay Area metro’s biggest leases, sales, financing deals, construction updates, and personnel moves. Have news you’d like to submit?
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TA Realty acquired a 415K SF industrial park in Fairfield, California, last week for $90.5M. Developer Panattoni sold the property after building it using a $19.6M construction loan from BMO Harris Bank, according to CommercialSearch.com.
JLL represented Panattoni in the transaction. The property is at 4550-4750 Business Center Drive in Fairfield, and includes three buildings totaling about 198K SF, with clear heights ranging between 32 feet and 36 feet. The property is 75% preleased to Landsberg Orora and Southern Glazer.
SALES
GI Partners purchased three office complexes across San Carlos and South San Francisco for $388M last week, which it dubbed the Peninsula Lab Collection, according to The Mercury News.
The properties include 7000 Shoreline Court in South San Francisco for $170M, 341 Oyster Point Blvd. in South San Francisco for $130M, and 75 Shoreway Road in San Carlos for $88M. Alexandria Real Estate sold the properties.
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University Terrace, a 10-unit multifamily community located in Berkeley, sold last week for $4.5M to a private buyer. CBRE’s Multifamily Team, composed of Keith Manson, Zachary Greenwood and Mac Watson represented the seller, an undisclosed private investor. Nick Davidson of Cire Partners represented the buyer in the transaction.
“The Bay Area multifamily market remains strong despite market headwinds. Through Sept. 15, 2022, our team closed more than $185M in sales in the City of Berkeley, underscoring the value proposition and demand in the region,” said CBRE Vice President Zachary Greenwood in a press release.
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Bardis & Miry Development purchased a 47K SF office property in Sacramento for $9M last week. The property is located at 350 University Ave. Dubbed the Executive Commons, the location was 95% leased at the time of the transaction. Cushman & Wakefield represented the seller, an entity called 350 University Partnership.
Built in the mid-1970s, the property is located near Highway 50, Interstates 80 and 5, and is near downtown Sacramento. The two-story office building was sold in an off-market transaction.
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Ellis Partners purchased 335 East Moffett Park Drive in Sunnyvale on Sept. 16, according to The Mercury News, paying $28M for the two-building property. County records showed that the property was purchased in an all-cash transaction.
“We’ve been methodically searching the Sunnyvale market for opportunities,” Ellis Partners co-founder and Principal Executive Jim Ellis said in a statement to the Mercury News.
“It’s difficult to find buildings in Sunnyvale. People buy them as soon as they become available.”
FINANCING
PGIM Real Estate provided $292M in floating-rate financing last week to Global Retail Investors toward the acquisition of a 16-property retail portfolio spread across California and Oregon, according to Connect CRE. Among the properties purchased are 14 shopping centers in California and two in Oregon.
“There has been increased enthusiasm around the retail market as fundamentals have improved over the past few years, despite the rise in e-commerce and the impact of Covid,” PGIM Real Estate Head of Debt Originations Melissa Farrell said to Connect CRE.
“The bounce-back in this sector highlights the temporary nature of the pandemic’s impacts and the significant pent-up demand that exists in the market.”
PEOPLE
Avison Young tapped Howard Berry to join its team as principal, based in San Francisco. Berry will partner with the company’s data center real estate team to advise and develop leasing, investment and sales strategies, while also bolstering the company’s networking and investor initiatives across Silicon Valley and nationwide.
“I’m incredibly excited to join forces with Avison Young, a firm that shares my values and has the ability and knowledge to support growth in the data center industry,” Berry said in a press release.
“Avison Young’s reputation of being a nimble, agile company that’s responsive to the needs of their brokers and clients made the firm the perfect fit for me and I look forward to connecting my network to the firm’s opportunities and data and technology resources.”
