Reporter- San Francisco Business Times
Newcastle Partners is betting that the Shadelands Business Park, a long struggling office submarket in Walnut Creek, is poised to make a comeback.
The San Francisco-based investor and developer recently snapped up Centre Pointe, a six-building, 197,000-square-foot office complex at 165 – 215 Lennon Lane, from seller Sun Life Financial, which has partnered with Newcastle on other projects.
The price was estimated at close to $21 million or $105 to $110 per square foot, according to Cornish Carey Commercial Newmark Knight Frank.
Dennis Higgins, managing partner of Newcastle, said he expects Shadelands to see more leasing and activity from healthcare tenants and Safeway Inc.’s proposed, 25-acre retail and senior housing project (read more here).
“The basis for which we were able to purchase Center Pointe was very attractive,” Higgs said. “Historically, the Shadelands hasn’t been the most popular submarket, but we think that with an aggressive basis and all the changes in the neighborhood, it’s going to be an attractive area.”
Newcastle, founded in 1999 by Higgs, owns office and industrial properties throughout California and tends to go after value-add properties in the Bay Area.
Center Pointe was 85 percent leased at the time of the deal and Newcastle expects to sign on new tenants soon.
In the past year, the firm has picked up properties including the 80,000-square-foot 246 First St. in San Francisco with partner Stockbridge Capital Group, the 225,000-square foot Great America Place office complex in Santa Clara and a few small buildings in San Francisco’s Jackson Square area.
Blanca Torres covers East Bay real estate for the San Francisco Business Times.