Sierra Pacific Buys Bay Area Office Campus

Concord Corporate Center is 30 miles from downtown San Francisco. Image courtesy of Newmark

Sierra Pacific has acquired Concord Corporate Center, a two-building, 346,731-square-foot office campus in Concord, Calif. Harbert Management Corp. sold the asset for $20 million, CommercialEdge data shows.

The campus previously traded in 2017, when Harbert purchased it from PGIM Real Estate for $63.5 million, according to the same source.

One Corporate Center came online in 1983. The seven-story, Class B building encompasses 134,251 square feet and features 19,535-square-foot floorplates, three passenger elevators, controlled access and offers 537 car parking spaces and a fitness center.

The 213,188-square-foot Two Corporate Center was completed in 1986. The 10-story Class B building includes 2,230 square feet of retail space and features four elevators, controlled access, 844 car parking spots and a fitness center. The new owner plans to update and renovate the amenities package and the common areas of both buildings.

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At the time of the sale, the property was 73 percent leased, with tenants including Patelco Credit Union, Walsh Construction Co., Pacific Service Employees Association, Regional Center of the East Bay and Versa Engineering & Technology, among others.

Located at 1320 and 1390 Willow Pass Road, Concord Corporate Center provides access to U.S. Route 242 and Interstate 680, and is some 30 miles from downtown San Francisco. The property is near The Veranda, a mixed-use retail center, and a variety of other retail and restaurant options.

The Newmark team that worked on behalf of the seller included Executive Vice Chairman & President Steven Golubchik, Vice Chairman Edmund Najera, Senior Managing Director Jonathan Schaefler and Director Darren Hollak.

The Bay Area’s office market endures

The Bay Area office market has been heavily impacted by the growing popularity of remote work models. However, transaction volume remained above $1 billion for the 12 months ending in October, a recent CommercialEdge report shows, with per-square-foot prices at $343. Vacancy clocked in at 18.9 percent, marking a 290-basis-point increase over a 12-month period.

Office values in San Francisco have been steadily declining recently. For example, The Swig Co., in partnership with SKS Partners, acquired 350 California for only $61 million in September, a steep discount compared to the $250 million price sought when the tower hit the market in 2020. Last month, Rubicon Point Partners paid only $72 million for The Townsend Building, a 137,000-square-foot property that seller CBRE Investment purchased three years ago for $132.6 million.