Tourbineau Plans Bay Area Office-to-Resi Conversion
The asset traded at more than a 70 percent discount.
Tourbineau Real Estate Partners has filed an application to convert a 121,144-square-foot office building into a 156-unit multifamily community in San Mateo, Calif., as reported by The Registry. TCA Architects provided design services for this adaptive reuse project.
Though part of a larger 202,014-square-foot property, the 12-story workplace facility is the sole building at the campus slated for conversion. Four other one- to two-story office buildings will retain their initial usages.
Plans call for studio, one- and two-bedroom layouts averaging 553 square feet. Additionally, 15 percent of the apartments are slated to become income restricted. Amenities will include a lobby, a lounge, a gym and landscaped courtyards.
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What’s more, the 1974-delivered building is on track to receive architectural upgrades, including the modernization of the facade by introducing energy-efficient window systems and a new coat of paint.
Located at 2121 El Camino Real, the building is approximately 22 miles southeast of downtown San Francisco, less than 1 mile from U.S. Route 101 and about 4 miles from San Mateo-Hayward Bridge that crosses the bay.
Tourbineau’s discounted deals lead to conversions
The campus’ former lender—TPG—took over the property after Rialto Capital Management was unable to pay a $75.8 million loan, according to Yardi Matrix data. TPG then sold the asset for $22 million to Tourbineau in May, representing a 71 percent decrease from its 2019 sale price of $77.3 million.
In a similar discount deal, the company acquired a 92,180-square-foot office building in metro D.C. The RMR Group sold the asset for just $4.3 million in September, down from its previous sale price of $18.3 million in 2012, the data provider shows. The new owner plans an office-to-self-storage reposition.
