Sierra Pacific nabs dual office buildings in Concord for $58 psf
Price for the complex with 73% occupancy sets new baseline for East Bay market
The fire sale of a pair of office buildings in Downtown Concord has set a new East Bay base line for office pricing: $58 per square foot.
Locally based Sierra Pacific Properties bought the 347,000-square-foot Concord Corporate Centre at 1320 and 1390 Willow Pass Road for $20 million, the San Francisco Business Times reported. The seller was Harbert Management based in Birmingham, Ala.
The deal works out to $58 per square foot — perhaps the lowest price paid for an office property since the pandemic.
Harbert Management bought the complex in 2017 for $63.5 million, or $183 per square foot.
The 10- and seven-story buildings, built in the mid-1980s, are 73 percent leased, according to Newmark, whose Steven Golubchik, Edmund Najera, Jonathan Schlaefler and Darren Hollak represented Harbet in the deal.
An unidentified source familiar with Contra Costa County’s office market told the Business Times that Harbert may have faced pressure from its lender. The value of its loan tied to the property was undisclosed.
Concord Corporate Centre was listed early this year alongside One Concord, a 369,000-square-foot office tower bought by Pleasant Hill-based California Capital & Investment Group for $40.5 million, or $110 per square foot.
Also up for sale is Sutter Square, a 177,000-square-foot office building at 1800 Sutter Street in Downtown Concord listed for $100 per square foot.
Atlanta-based Jamestown, which struggled over the summer to sell a 300,000-square-foot empty office building at 2000 Clayton Street, pondered an office-to-vertical farming conversion.
Office leasing in Contra Costa County has remained subdued. In Concord, office availability among the city’s 3.4 million-square-foot inventory of Class A space hit 40.4 percent in the third quarter, according to CBRE.
Sierra, a unit of the Seeno Companies run by the Seeno family, plans to renovate Concord Corporate Centre’s common areas and update features at each of the two buildings, Newmark said.
Seeno’s other affiliates include Alfred D. Seeno Construction and Discovery Builders, among a consortium that planned to redevelop Concord’s Naval Weapons Station before the city axed negotiations early this year.
— Dana Bartholomew