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Real Estate Business Review | Friday, November 08, 2024
FREMONT, CA: Newmark has announced that it advised on the sale of The Plaza at Walnut Creek, a trophy 362,399-square-foot office facility located in San Francisco's East Bay region. The property sold for $162 million, making it the highest multi-tenant office sale on the West Coast since 2022. Steven Golubchik, Newmark Executive Vice Chairman and President of Western Region Capital Markets, Vice Chairman Edmund Najera, Managing Director Darren Hollak, and Associate Director Francesca Zappula represented Clarion Partners in the sale to PSAI Realty Partners. Leasing advisors for the property include Newmark Vice Chairman Breck Lutz, Senior Managing Director Alex Grell, and Managing Director Danny Bartz.
"This property presented investors with a once-in-a-generation opportunity to acquire a top performing asset in the region," said Golubchik. "Despite general pullbacks in occupancy and rental rates in the office sector, The Plaza at Walnut Creek has bucked the trend and recorded meaningful occupancy and rental rate gains since 2019."
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The Plaza at Walnut Creek, located at 1331 and 1333 North California Boulevard, consists of two multi-tenant buildings connected by an underground parking garage. Thanks to the Newmark leasing team, the property was 93 percent occupied at the point of sale and has maintained a market-leading occupancy rate of 91 percent over the last five years.
Golubchik continued, "The marketing processes generated some of the strongest investor interest we have seen in the last three years, providing ownership with a wide range of potential suitors including both foreign and state pension and core-plus office capital."
The property is prominently located at the intersection of North California and Mount Diablo Boulevards, providing strong visibility to more than 38,000 vehicles passing by daily. It also offers convenient access to the 680 and 24 freeways and proximity to Walnut Creek's dense amenity base, which includes Broadway Plaza, Main Street Plaza, Olympia Place, and Plaza Escuela.
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