Sunset Development, MetLife JV Grabs 2 MSF AT&T Campus in Bay Area
- Jan 23, 2014
Sunset Development Co., and MetLife Inc., have teamed on a joint venture to acquire the 2 million-square-foot AT&T campus in San Ramon, Calif.
The sale includes a significant leaseback by AT&T, which reportedly will continue to occupy nearly 1 million square feet of space.
“This acquisition recaptures a well-developed property in the heart of Bishop Ranch,” Alex Mehran Jr., Sunset Development Co.’s president & COO, said in a company release. “It provides us with a significant lease from AT&T along with 1 million square feet of office space that is available and of the highest quality in the Bay Area.”
Located at 2600 Camino Ramon, the project’s adjacency to Bishop Ranch’s City Center and San Ramon’s North Camino Ramon Specific Plan area provides numerous master-planning opportunities.
Designed by world-renowned architects, Skidmore Owings and Merrill, the property includes four wings of nearly half a million square feet each, a central amenity hub, a world-class conference center and dining facilities.
The plan of the joint venture is to redevelop the project and create a modern office environment with large blocks of space available for new tenants beginning in 2014. The project’s features will allow new tenants to enjoy world-class facilities without the cost of constructing underutilized private amenities.
“Part of the attraction of Bishop Ranch is our ability to deliver to tenants the same amenities that large owner-occupier campuses bring to their employees,” Ed Hagopian, Sunset Development Co.’s executive vice president, said in the release. “This acquisition turbocharges that offering by increasing our square footage under management by more than 40 percent and adding a 200,000-square-foot amenity hub that will serve all of Bishop Ranch.”
Bishop Ranch has signed several notable leases recently, including 400,000 feet to Pacific Gas and Electric; 400,000 feet to Bank of the West; 233,000 feet to General Electric Technologies; and 233,000 feet to Robert Half. It also counts hundreds of small businesses among its tenants.
This is Sunset Development Co.’s first acquisition of an existing asset and first equity partnership through MetLife’s 49 percent stake in the property. The company plans to develop City Center, a 500,000-square-foot shopping and entertainment development with 500 housing units across the street from the AT&T building.