Oakland-based California Capital and Investment Group has acquired the 449,200-square-foot Walnut Creek Executive Park in Walnut Creek for $49.6 million, or $110 per square foot. The deal is scheduled to close July 13, according to a person with knowledge of the deal at JLL, the brokerage which represents seller Irvine-based The Knoll Company.
Walnut Creek Executive Park is an office property at 2125 Oak Grove Road, 2775-2855 Mitchell Drive, and 2730-2880 Shadelands Drive. It includes a total of 12 buildings. The complex was developed between 1973 and 1986 and was renovated in 2016 and 2017.
The complex has an occupancy rate of 85 percent. Verizon, the largest tenant, has a lease covering about 21 percent of the complex. Other tenants include Kaiser Permanente with 11 percent of the property, Republic Services, which takes up around 2 percent of the property and Sherman Williams, which occupies 1 percent of the development.
After a sharp spike in leasing activity in Walnut Creek the previous two quarters, the market stabilized at the end of the second quarter, according to a report by Colliers. The overall vacancy remained the same as the previous quarter at 18.9. Overall asking rents slightly increased to $3.07 per square foot, compared to $3.06 the previous quarter. The remainder of the year should see positive trends as more employees return to the office, Colliers said..
“While leasing activity was flat during the second quarter, sales velocity picked up the slack with several investment sales occurring with more pending,” the report stated. “The remainder of 2022 should continue this upward trend as more companies divert away from permanent work-at-home practices and require employees back in the office.”
The Walnut Creek deal aligns with the average of other recent commercial acquisitions in the East Bay. Ridge Capital Partners acquired a 49,000-square-foot office building earlier this year for $193 per square foot. That is more than the Eastmont Town Center acquisition in East Oakland by Tidewater Capital for $103 per square foot.
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