KB Home Pays $58M for Office-to-Resi Plan in San Ramon

KB Home has paid $57.8 million for a 276,000-square-foot building it wants to replace with 190 homes in San Ramon’s Bishop Ranch.

An affiliate of the Los Angeles-based developer paid cash for the three-story office building at 2527-2545 Camino Ramon, the San Jose Mercury News reported.

The seller of the Bishop Ranch 7 building was locally based Sunset Development, the principal owner and developer of Bishop Ranch.

The deal works out to $209 per square foot.

Plans by the developer include bulldozing the offices at Camino Ramon and Executive Parkway to clear the way for 190 homes.

KB Home wants to develop Bartlett, a walkable neighborhood on the north side of Bishop Ranch, according to the Mercury News.

The project would have 396,100 square feet of housing, including 118 townhomes and 72 single-family homes, according to a planning document. The detached homes would range from 1,800 to 2,400 square feet with three to four bedrooms and two and a half to three bathrooms, with two-car garages.

Renderings by SDG Architects show gray and white townhouses surrounding green courtyards with jacaranda trees. The project would be built next to City Village, a 404-unit project now being built by SummerHill Homes, a local unit of Calabasas-based Marcus & Millichap.

Cost and timeline for the KB Home development were not disclosed.

Sunset, owned by the Mehran family, wants to redevelop the 585-acre office campus at Bishop Ranch into a retail village with up to 10,000 homes.

The developer’s CityWalk Master Plan, approved in 2020, would redevelop 135 acres with thousands of homes, a hotel, shops and restaurants in three distinct neighborhoods.

The master developer, led by Alex Mehran Jr., also plans to build another 2,600 homes at the former Chevron headquarters at 6001 Bollinger Canyon Road, along with 125,000 square feet of open-air shops and restaurants and a 2.5-acre park. Sunset, which sold Chevron the land for its headquarters in 1981, bought it back in 2022 for $174.5 million.

Mehran told The Real Deal this month that Sunset had made random selections as to which offices would be torn down for homes.

“I threw a dart at the wall,” he joked, explaining how he decided which of his family’s office properties should be razed to create 300,000 square feet of retail and entertainment options at Bishop Ranch’s CityCenter, which opened in 2018, and 8,000 planned homes.

— Dana Bartholomew