Office Sale Could Pave Way For Multifamily Development In Fremont
The Stanley Group has purchased a two-story, 71K SF multi-tenant office building in 3340 Walnut Ave. in Fremont. The property is 100% occupied by Lipman Insurance Administrators, Coldwell Banker, Chicago Title and The Center of Speech.
“Parkway Center offered a great opportunity for an investor to increase [net operating income] by bringing the current tenants to market rents to take advantage of the dwindling office supply,” NKF Capital Markets Director Tim Walling said.
Since the Parkway Center is within a multifamily zoning overlay, the developer is considering redeveloping the site into multifamily given the current demand for housing. Parkway Center is close to the Fremont BART station and surrounded by existing retail.
Rents in Fremont average about $2,308, according to RentCafé. An ongoing need for housing is pushing developers to consider additional housing projects. At the Warm Springs BART station, over 1,000 units of housing are planned within the transit-oriented community.
Fremont only issued 58% of the permits needed for the city to meet its regional housing need allocation during 2007 to 2014. Most of the permits issued were for above-moderate-income units. Fremont’s RHNA requirements through 2023 are for 5,455 units of housing, the second-highest need allocation for Alameda County cities.
NKF Capital Markets Vice Chairman Steve Golubchik and Walling represented the buyer, Los Gatos-based The Stanley Group, and the seller, Bayside Realty.