JP Morgan Sells San Mateo Offices, Retail to Shorenstein

Shorenstein Investment Advisers has added another mixed-use property in the Bay Area to its portfolio.

The San Francisco-based firm acquired Park Place at Bay Meadows, a three-building, 258,000-square-foot mixed-use property in San Mateo, for $175 million, CoStar reported.

The deal includes the office buildings at 1100 and 1200 Park Place and an adjacent Whole Foods-anchored shopping center at 1010-1060 Park Place, Commercial Search reported. The offices span about 209,000 square feet, while the grocery store and shopping center comprise the remaining 49,000 square feet.

The 1100 Park Place building purportedly sold for $85.7 million, or about $583 per square foot, and 1200 Park Place went for $40 million, or approximately $655 per square foot, according to CoStar. The retail center at 1010-1016 Park Place sold for around $48.3 million, or about $991 per square foot.

The seller was J.P. Morgan, which listed the 100-percent leased complex for sale in January for the same price it just sold for. The bank bought the asset in 2018 for an undisclosed price; prior to that, it traded hands in 2007 for $152 million, according to CoStar.

Tenants and visitors have access to 60 dining options and amenities in the complex such as outdoor lounge areas and electric vehicle supercharging stations.

Earlier this month, video game giant Roblox expanded its headquarters at Bay Meadows by 68,334 square feet to a total of 750,000 square feet of offices, the San Francisco Business Times reported. Elsewhere in the complex, video game developer Zynga has its headquarters in most of the 62,000-square-foot 1200 Park Place building. Real estate firm Essex Property Trust is the main tenant at 1100 Park Place, per CoStar.

Future plans for Bay Meadows call for 1,100 homes, 780,000 square feet of offices, 40,000 square feet of retail, 18 acres of parks and a private high school. The city of San Mateo is mandated by the state to build at least 7,015 new units of housing by 2031 as part of its Housing Element.

— Chris Malone Méndez