Colliers Arranges $31M Sale of Bay Area Office Building
- Jan 21, 2020
Colliers International has arranged the sale of Sutter Square, a 174,689-square-foot office building in Concord, Calif., for $30.9 million. Meridian sold the property, after nearly three years of ownership, to a joint venture between Barker Pacific Group and Iron Point Partners. Colliers’ Bob Gilley, Brad Idleman and Andy Zighelboim represented both the seller and the buyer in the deal.
The nine-story Sutter Square occupies 1 acre at 1800 Sutter St., within a cluster of retailers and eateries near Freeway 242, around 1 mile from downtown Concord. The office building is close to bus lines 20 and 320 on Clayton Road and it is less than 1 mile from the Concord BART station, which provides convenient access to San Francisco and the wider Bay Area.
Value-add investment in focus
Built in 1988, the asset encompasses floorplates ranging from 15,000 to 21,000 square feet. Meridian, after acquiring the building in 2017, invested $4 million in capital improvements. Upgrades included chiller replacement and installation of automated building controls, a new roof, a new conference room with upgraded audio-visual equipment and a remodeled gym. Sutter Square is currently 90 percent occupied.
“Our investment focus to acquire value-add opportunities in select submarkets will continue into 2020, as we expect a strong regional economy in the near term. Tenants want flexible, efficient space with access to transit and our future investments will be consistent with our history of finding well-located, attractive buildings that meet the needs of an evolving workplace,” said Meridian’s Senior Vice President Awais Mughal to Commercial Property Executive.
Last October, Meridian expanded its Bay Area portfolio with the acquisition of a 100,000-square-foot office building in San Mateo, Calif. The company acquired the asset as part of their value-add office investment strategy.
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