Phase 3 picks up 250K sf office complex in San Carlos for $102M

Phase 3 Real Estate Partners has bought a 250,000-square-foot office complex on the San Carlos waterfront for $102 million.

The San Diego-based lab developer bought Skyway Landing, a two-building complex at 959 and 999 Skyway Road, the San Francisco Business Times reported. The seller was Hudson Pacific Properties, based in Los Angeles.

The price works out to $408 per square foot. The three-story LEED Gold-rated offices were built in 2000, according to Loopnet, and have a combined 250 parking spots.

The purchase price is $2 million below what Hudson Pacific paid for Skyway Landing in 2015, or $416 per square foot. The deal closed last month, but the identity of the buyer wasn’t known. 

San Carlos had the largest office deal on the San Francisco Peninsula last quarter, when Dewey Land Company bought a 24,000-square-foot office complex at 990 Industrial Road for $22 million. 

But the Peninsula has seen a steep decline in office sales, which fell 94 percent in the fourth quarter, according to Kidder Mathews. Office vacancy was 15.1 percent.

Phase 3 is now developing a 17-story office and research building at 121 East Grand Avenue in South San Francisco.

The firm completed the nearby 721,000-square-foot Genesis Towers in 2019, which sold in 2020 for $1 billion. 

In October, the Oakland-based Minkoff Group filed plans to turn the 3.4-acre site of a concrete plant in San Carlos into a 335,100-square-foot life science campus at 1026 Bransten Road.

— Dana Bartholomew