Behind the Deal: EOP's San Mateo Sale
Equity Office's San Mateo Centre is off the market, having just been bought by Hines and Angelo Gordon. One of the execs in the partnership gave us more details.
The 217k SF, three-building office complex on a 9.8‐acre parcel at 1800-1820 Gateway traded for $325/SF—or nearly $71M—according to sources. Hines senior managing director Cameron Falconer, below at Bisnow's State of the Market event in January, tells us the San Mateo and Foster City office market is consistently strong and attracts a variety of high-quality users. This 86% leased campus is an option for tenants looking for a "cost-effective alternative" to S.F. and Silicon Valley.
Hines and Angelo's principals have stayed close over the last couple of years and this is their first acquisition. The JV is looking to make more deals in the Bay, nationally and internationally where the firms collectively have overlap (that's pretty much "all places," he says). Cameron exclusively tells us Hines' development project in San Mateo is planning to go spec, starting construction early 2015 on the 305k SF Class-A, pre-certified LEED Platinum office site. Hines doesn't currently have anything for sale in the area, he says, having recently handed off some Foster City buildings to Gilead.
