For-sale office campus ripe for life science reposition

Schnitzer Properties lists 209K sf property in Pleasanton with specifying price

Schnitzer Properties' Jordan D. Schnitzer and Hacienda West Business Park at 3825-3875 Hopyard Road (Schnitzer Properties, Google Maps, Getty Images)
Schnitzer Properties' Jordan D. Schnitzer and Hacienda West Business Park at 3825-3875 Hopyard Road (Schnitzer Properties, Google Maps, Getty Images)

An Oregon investment firm is selling a 14-acre office campus with 209,000 square feet of space in Pleasanton as an opportunity for life sciences developers.

Schnitzer Properties, based in Portland, seeks a buyer for Hacienda West Business Park at 3825-3875 Hopyard Road, the San Francisco Business Times reported. While it listed the five-building property, it didn’t specify a price.

Instead, it created a brochure targeted to appeal to East Bay life sciences developers.

Schnitzer, formerly Harsch Investment Properties, paid $38 million for Hacienda West in 2005. Its most recent lease expires in August 2027.

That the firm is marketing a property that is 47 percent occupied as a potential life sciences redevelopment may reflect a tepid Tri-Valley office market.

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Pleasanton had a 19.3 percent vacancy rate for prime Class A office buildings in the second quarter, while the Tri-Valley had a Class A vacancy rate of 22.21 percent, according to Newmark.

Tri-Valley office buildings are newer than other parts of the Bay Area, so developers could potentially convert the existing buildings at Hacienda West into labs or R&D space, according to the Business Times.

Such conversions tend to be cheaper than ground-up construction, for which costs have jumped. Across the nation, conversions of offices to life sciences labs have boomed.

Hacienda West Business Park is part of Hacienda Business Park, a commercial campus of 900 acres. It’s next to the 292,000-square-foot Britannia Business Park, acquired by Tarlton Properties in January for $78 million, or $267 per square foot.

— Dana Bartholomew

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