Harvest Properties Completes Office Acquisition in Deal Rumored to Be Worth $100 Million
- Apr 11, 2014
Harvest Properties, one of the more active companies in the San Francisco Bay Area office market, has reportedly made another large acquisition. The company, along with joint venture partner LaSalle Investment Management, paid a fee rumored to be in the vicinity of $100 million for a two-building office complex in San Mateo, Calif. The joint venture acquired the property from seller Fisher Investments with whom a lease-back deal has already been arranged. Earlier this year, Harvest and Invesco Real Estate sold Parkside Towers, a 400,000-square-foot office complex, to Heitman in a deal worth about $200 million.
The two buildings acquired by Harvest and LaSalle are Century Centre I and II. The assets total 276,000 square feet of Class A office space at the intersection of Highway 101 and Highway 92 in San Mateo. According to The Silicon Valley Business Journal, former owner Fisher Investments has worked out a deal keeping it at the facility. The investment adviser firm will keep occupying the 103,000 square feet of office space it occupies at the complex.
Harvest Properties has already completed leasing deals at the office complex before the acquisition, bringing the occupancy rate at around 93 percent. Three new leases for a total of 56,000 square feet of space, as well as the renewal for 39,000 square feet completed with tenant Apttus, a software company.
Located at 1400 and 1450 Fashion Island Boulevard, the office complex is set to receive a number of upgrades, the most prominent improvement announced by the new owner being a new parking garage. New upgrades such as new bathrooms, elevators, common areas and landscaping will amount to a total of around $6 million in investments that Harvest Properties has lined up for Century Centre I and II.