Harvest Properties Reaps Rewards in San Mateo
- Jul 17, 2015
By Alex Girda, Associate Editor
An office campus in San Mateo is under new ownership after a fluctuating eight-year stint in Harvest Properties’ portfolio. New York Life Real Estate Investors A joint venture of the company and Cigna Realty Investors recently received $49 million from New York Life Real Estate Investors for Bridgepointe Office Park. Harvest Properties acquired the property in the spring of 2007 for $42 million. Steve Herrmann, Robert Gilley and Eric Fox of DTZ arranged the sale on behalf of the seller.
Comprising two three-story Class A office buildings at 1500 and 1510 Fashion Island Blvd., the complex totals 130,107 square feet. it is near the 92/101 corridor as well as the Bridgepointe Shopping Center and a Hillsdale Caltrain shuttle service stop.
Five years ago, the property was slipping toward toward foreclosure when a $27 million mortgage from JP Morgan went into default. Cigna took the loan back and teamed up with Harvest Properties to renovate the property and attract new tenants. Since then, the joint venture has leased about three quarters of the property. Most recently, ACCO Brands, an office supply company, signed on to take more than 22,000 square feet in the fall of 2014.
Given the substantial amount of interest in Peninsula office assets, rents and occupancy are on the rise. Some spaces at Bridgepointe Office Park are renting for well under current market rates, indicating that the property has strong growth potential.
Image courtesy of harvestproperties.net