Bay Area offices have a big punch of $1.1 billion with a mega real estate deal!
In the past decade, San Jose, San Carlos and Walnut Creek have accounted for a big chunk — nearly $200 million — of a coast-to-coast mega – A deal for dozens of properties suggests that the Bay Area remains a magnet for real estate investors.
A $1.13 billion property deal involves 53 office buildings on 41 separate sites, and five office buildings.
Florida-based investors who co-founding Workspace Property Trust conducted the purchases as a way to widen their holdings.
Workspace Property Trust believes that office workers and companies are moving away from the downtown districts and into more suburban markets in search of a better lifestyle. They are increasingly looking for a better environment where the work is.The migration, some experts believe, has become pronounced in the aftermath of the coronavirus.
The outbreak of the deadly bug prompted widespread business shutdowns and made many workers work from home rather than at their offices..
“We know that in the last five years millions of Americans have moved from the suburbs to the cities,” said Roger Thomas, co-founder and president of Workspace Property Trust. “Nearly one-third of all Americans today are considering moving back to cities after the pandemic is over.”
Workspace Property Trust has a presence in fourteen of the top 20 U.S. The company said that metro centers.
These are the markets that Amazon lists in its home state of California. They are Atlanta, Charlotte, Dallas, Houston, Minneapolis, Phoenix, St.Louis, according to Workspace.
This is what Workspace Property Trust paid for the properties in the Bay Area.
The price was revealed through this newspaper’s review of official documents filed with government agencies in the region:
—One Circle Star Way and Two Circle Star Way in San Carlos, $113.The two office buildings together total 103,900 square feet.
—3010 Orchard Parkway in north San Jose, $40. The building totals 98,000 square feet.
— Ridder Park Drive is in north San Jose and has a value of $23 million. The building is composed of 83,800 square feet.
— There is a street in Walnut Creek that has a value of $12.1 million. The Bay Area office purchases total $188 million and the building totals 85,500 square feet.
Despite making only 5 of the 53 properties purchased in the deal, or about 2.4 percent of the properties, the properties bought in the Bay Area contributed 3.6 percent of the total $4.13 billion value of the transaction.
The seller was a real estate company. In the wake of the transaction, he was a minority owner of the properties.
“We are thrilled to expand our footprint and double down on the suburban office segment,” said Thomas Rizk, co-founding and chief executive officer with Workspace.