Twenty-four companies relocated from the Peninsula and Silicon Valley in 2012 and 2013, absorbing 700,000 square feet. Many of these firms moving to the City are actually saving money. For locations such as downtown Palo Alto and Stanford Research Park, asking rents start at $72 to $84 a square foot, triple net.
Cancer drug developer Medivation Inc. leased 43,000 square feet at 499 Illinois Street in Mission Bay and will establish a laboratory in the space. This lease leaves the building with 36,000 square feet of vacancy — 8,000 square feet on the first floor and 28,000 square feet on the second floor.
Swift Realty Partners paid $20 million to acquire the 77,000-square-foot Corporate Terrace at 3466, 3468 and 3470 Mount Diablo Boulevard in Lafayette. The office building is located within the Lamorinda submarket, where current vacancy rate is 8.3 percent and average asking rent is $2.70 per square foot for full-service gross on a monthly basis.
Due to relatively affordable prices at approximately $100 per square foot, buyers have snapped up historic Class B office buildings in Oakland. For instance, Terra Nova paid about $3.25 million or $116 per square foot for 1714 Franklin Street. Also, the Greenlining Institute bought 364 14th Street for $1.96 million or $84 per square foot.
Bentall Kennedy LP purchased Transbay Block 6 for a confirmed sales price of $30 million, or about $16.5 million per acre. The 1.82-acre parcel is entitled for a 545-unit apartment complex and will feature 409 units of market-rate housing and 70 units of affordable housing as well as ground floor retail and publicly accessible open space.
Invesco Real Estate has acquired the SSF Logistics Center for around $120 million. The asset has two separate buildings covering 26 acres located along the west side of 101 and north of US 380. One building is 453,076 square feet and home to Federal Express; the second building is 9,240 square feet and currently vacant.
The last two buildings of CBRE Investors’ five-building City Center portfolio are trading hands. Ellis Partner is buying 1111 Broadway, a 553,210-square-foot high-rise and trophy property. Meanwhile, STG Group tied up City Square, which includes 166,220 square feet of office and retail and the City Center parking garage.
Dechert Law has entered a lease for the tenth floor of the office building at One Bush street. The law firm will occupy 14,044 square feet in the 18-story, approximately 313,906-square-foot, 4-Star structure. The Financial District property was constructed in 1959 and is LEED Platinum certified.
Golub & Co. is ready to start construction this fall on a $200 million, 32-story residential tower at 299 Fremont after securing financing from the Multi-Employer Property Trust and its advisor, Bentall Kennedy. The 409-unit luxury high-rise complex will include an apartment tower, townhome residences, a ground-level courtyard and street-front retail.
The land at 16th and Mission streets above the BART station would be transformed into a 400,000-square-foot mixed-use development. Maximus Real Estate Partners is proposing a $175-million project, featuring 351 housing units and 32,000 square feet of retail on the northeast corner of the intersection.