June 10, 2016
A joint-venture between New York Life Real Estate Investors and Emeryville, CA-based Harvest Properties acquired One Bay Plaza, a 195,739-square-foot office building in Burlingame, CA from Los Angeles-based Hudson Pacific Properties for $53.4 million. The nine-story tower fronting the San Francisco Bay is roughly 80% leased and traded at an initial cap rate of roughly 6%.
A $5-million capital improvement program is planned, including entrance enhancements, “collaboration upgrades,” a conference center, improved lobby and fitness centers and some creative office conversions on the first floor.
The new owners expect to achieve yield increases as its leases resets at improved market rental rates. Roughly a third of One Bay Plaza’s space is set to roll over the next three years.
The property was marketed by Eastdil Secured.