EverWest Real Estate Investors continues to expand its Bay Area portfolio with its first San Mateo County office purchase. The company partnered with private market investors Partners Group to purchase the roughly 262K SF Burlingame Bay Office Park at 555-577 Airport Blvd.
The purchase price was about $110M, according to the San Francisco Business Times. The previous owner, H&Q Asia Pacific, paid $90M for the property in 2015.
San Mateo County’s office market has picked up in recent months with Meridian selling a Brisbane office asset for about $40M in early June. Hines purchased a 380K SF office park in San Mateo for $217M in April. Monday Properties bought its first Bay Area asset after it purchased a 70K SF building at 1840 Gateway Drive in San Mateo in January.
EverWest Managing Director Ryan Madson directed the Burlingame acquisition on behalf of the buyer.
“The North Peninsula office market is enjoying exceptional conditions, with overall vacancy at just 6% and strong and broad tenant demand that will continue to benefit well-located, high-profile projects like Burlingame Bay Office Park,” Madson said.
The two-building Class-A office park spans about 13 acres. The buildings are five and eight stories and 121K SF and 139K SF, respectively. It is about 90% leased and its biggest tenant is Alaska Airlines, which leases about 85K SF, according to the San Francisco Business Times.
Burlingame Bay Office Park is next to the Hilton DoubleTree hotel, the Hilton San Francisco Airport Bayfront hotel and numerous restaurants. Kylli, a subsidiary of Genzon Property Group, is building a 767K SF office/R&D complex blocks away at 300 Airport Blvd.
Newmark Knight Frank Executive Managing Directors Josh Rowell and Craig Kalinowski and Senior Managing Director Dan Matteucci serve as the building’s leasing brokers.
The Burlingame acquisition marks the latest in EverWest’s growing Bay Area portfolio. EverWest purchased an Emeryville office for $33M in the fall and completed the acquisition of a 16K SF creative office building in downtown San Francisco in May.
The company also owns the 405 Victory industrial project in South San Francisco and recently completed a project on Depot Road in Hayward.
