Hines JV Sells Bay Area Office Campus for $111M

A joint venture between Hines and a subsidiary of real estate funds managed by Oaktree Capital Management has sold Ygnacio Center, a 529,612-square-foot office campus in Walnut Creek, Calif., for $111 million, according to The Registry.

Hall Equities Group acquired the asset, Contra Costa County public records show. The buyer took out a $46.5 million loan from Farmers & Merchants Bank of Central California.

The three-building complex previously traded in October 2018, CommercialEdge information shows. The joint venture acquired it from LaSalle Investment Management for $210.5 million.

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Located at 1990 N. California Blvd., 2001 N. Main St. and 2033 N. Main St., Ygnacio Center is off Interstate 680 and the Broadway Plaza shopping center. Downtown San Francisco is 25 miles away, while San Francisco International Airport is 35 miles southwest.

Completed between 1974 and 2002, the campus comprises a six-story and two 10-story buildings. Floorplates of the LEED Silver-certified mid-rises range between 21,231 and 28,000 square feet. Each building also has 2,000 square feet of first-floor retail space.

Amenities at the transit-oriented complex include a 8,200-square-foot center with conference facilities, coworking spaces, bike lockers and outdoor collaborative space, as well as a fitness center and EV charging stations.

San Francisco office sales remain steady

San Francisco’s office investment volume year-to-date as of April clocked in at $514 million, ranking in the top 10 U.S. metros with large sales volumes, according to the latest CommercialEdge office report. Assets in the market traded for $325 per square foot on average, well above the $191 national index.

At the beginning of this month, Paramount Group sold a 25 percent interest stake in One Front Street, a 649,000-square-foot office building. The transaction valued the asset at $255 million.

Other notable deals in the metro include LendingClub Corp.’s agreement to acquire the 233,887-square-foot 88 Kearny St. in downtown San Francisco for $74.5 million. The firm will use part of the building as its headquarters.