By Ariela Moraru
Meridian acquired Sutter Square, a 174,689-square-foot office building in Concord, Calif. This marks the company’s second value-add office investment in the last 12 months in the San Francisco Bay Area. Cranbrook Group of Modesto, Calif., sold the property for $26.2 million. Transwestern was selected to handle the leasing.
Located at 1800 Sutter St., the nine-story building was 78 percent leased at the time of the transaction. The property is close to BART and new multifamily and retail developments part of downtown Concord’s revitalization. The asset has easy access to Interstate 680 and state routes 242 and 4 and is a five-minute drive to John Muir Health, Concord Medical Center.
“Downtown Concord has evolved into a viable residential, lifestyle and retail environment to complement its existing corporate office base and the adjacent Concord Naval Weapons development solidifies the future long-term viability of investing in Concord,” Scott Ellis, SVP, Transwestern, said in a prepared statement.
Ellis and Senior Managing Director Edward Del Beccaro, represented the seller, while Meridian represented themselves in the transaction.
Value-add investment strategy
Meridian plans to reposition the property and bring upgrades to the building systems, roof and common areas, including the lobby, hallways, fitness room and conference area. Individual tenant suites will be improved with new carpet, paint, glass wall offices and Title 24 energy-efficient lighting. ADA issues throughout the building will also be addressed. Brooks noted Concord’s office market strength as tenants transition away from more expensive Bay Area markets.
“Below market rent and occupancy provided an opportunity for Meridian to purchase this asset as part of our value-add office investment strategy,” said Lorenzo Brooks, Meridian’s director of acquisitions, in prepared remarks.
Last year, Meridian purchased a 115,000-square-foot medical office complex in Los Angeles County for $37.5 million and earlier this year a six-story 105,000-square-foot office building in San Mateo County, Calif., for just under $29 million.
Image courtesy of Meridian