Recent Transactions in Bay Area and Silicon Valley Cement Area’s Appeal
- Jan 24, 2013
One of the largest contemporary commercial real estate transactions in the Bay Area was recently completed in Oakland. The building, serving as Clorox’ headquarters in the city’s downtown area, was reportedly acquired for a total of $110 million, InsideBayArea.com reports. The buyer was active real estate investment company Westcore Properties.
The new owner has already announced its intentions to renovate portions of the office building and upgrade the value of the property by bolstering its tenant roster. The 520,000-square foot building located at 1221 Broadway has served as Clorox’ headquarters since 1988 and will continue to be used by the household item manufacturer as per the terms of the sale.
The company has opted to sell its 24-story office tower due to an ongoing process of moving a large chunk of its workforce to its new office and research campus in Pleasanton. Clorox will stay on as the building’s anchor tenant, a long-term lease being agreed to for around 300,000 square feet of space in the 1976-built highrise.
Also in recent San Francisco Bay Area office market news, a Mountain View building was recently acquired by Peninsula Land & Capital for a total of $17.75 million. This particular transaction attracted interest due to the profit the seller generated through the sale, Seagate Properties Inc. having previously acquired the asset for only $9.5 million. The 1989-built, 42,622-square foot facility had an occupancy rate of 66 percent, and its tenant roster included names such as Guardian Analytics, LyLife.com and Infor Systems.
The transaction illustrates the increasing interest in office assets not only for Silicon Valley in particular—but for the Bay Area as a whole. The positive influence of tech giants such as Facebook, Google and Apple that have, during the past couple of years, committed to Silicon Valley continues to attract real estate investment companies.
Image courtesy of user Coolcaesar via Wikimedia Commons
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