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Meridian has sold its 74k SF multi-tenant office building on 5776 Stoneridge Mall Road in Pleasanton for $15.5M, reflecting a cap rate of under 7%. The developer, which has more than 150k SF in development/redevelopment and another 500k SF in the pipeline, is aggressively pursuing value-add general and medical office opportunities in California.
“Meridian has a healthy pipeline with a half dozen projects currently in escrow, more than a dozen letters of intent outstanding and several completed projected listed for sale across our healthcare and general office business platforms,” says COO John Pollock (pictured above right with Mike Conn and Dan Rosenbaum during a bike ride on Mount Diablo). “We are still looking for more. We have an appetite for land and buildings where we can bring our expertise to bear and create value.”
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When Meridian acquired The Atrium in January 2015, the building was 100% leased with more than 50 tenants. Rents were about 25% below the current market. Meridian renewed or replaced about 60% of the tenants and provided more than $1M in capital improvements.
“With an average tenant size of less than 2k SF and loyal, long-term tenants, our plan was to increase the average rent in the property towards prevailing market rent while giving tenants more value with our improvements,” says Meridian General Office division SVP Dan Rosenbaum.
Meridian sold The Atrium to a San Francisco-based private investor repped by Steve Song of Bay Properties. Vince Schwab and Collin White of Marcus & Millichap repped Meridian. Simon Vogt of Lee & Associates helped source the property and assisted leasing efforts for Meridian.
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