A Blackstone-owned office property in Emeryville is on the market after securing a sizable lease a few months ago.
The EmeryTech business center at 1400 65th Street is being marketed for sale, the San Francisco Business Times reported. Blackstone acquired the 234,016-square-foot property in 2019 for $126.5 million and secured a $75.9 million loan from Deutsche Bank backed by the property, which it modified last March to increase to $90 million.
The listing with Newmark comes after Blackstone inked a 10-year lease deal with Premiere Nutrition in September. The locally based nutrition company occupies 118,767 square feet at the EmeryTech campus.
EmeryTech is currently 66.9 percent occupied, according to the Business Times. The complex has undergone more than $37.9 million in capital improvements, including upgrades to HVAC tech and solar panel installation. On-site amenities include fitness center, rock-climbing gym, showers, outdoor patios and cafeteria.
An eventual offloading of the property is expected to be a short sale, meaning it would sell for less than the balance of the debt linked to the property, a source familiar with the site told the Business Times. Such a transaction would resemble other office property sales in Emeryville.
In September, LBA Realty bought a 16-story, 350,000-square-foot office building at 2100 Powell Street for $72.5 million, or $200 per square foot, representing a 57.6 percent drop from the $170.9 million that CBRE Investment Management paid for it in 2018. The $72.5 million transaction price was also a short sale, according to the Business Times. If the EmeryTech property were to be sold at $200 per square foot, the purchase price would total approximately $47 million, per the Business Times.
Another Emeryville property once owned by Blackstone also traded hands last year. Sutter Health bought a 12-acre life sciences campus in the East Bay city from Blackstone’s BioMed Realty for $450 million, or $615 per square foot, with plans to turn the site into a 1.3-million-square hospital and medical center. — Chris Malone Méndez
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