Dollinger picks up three-building office campus in Fremont for $23M

Dollinger Properties has picked up a three-building office campus that once served as a regional hub for Men’s Wearhouse in Fremont for $23.4 million.

The Redwood City-based investor bought the 116,800-square-foot property in Stevenson Business Park at 6100 Stevenson Boulevard, the San Francisco Business Times reported. The seller was Men’s Wearhouse, based in Houston.

The deal works out to $200 per square foot. The price paid by the apparel firm for the property was not disclosed.

Men’s Wearhouse had used the campus for offices, but the land is zoned for industrial-tech uses and the campus could be redeveloped, according to Northmarq, which brokered the sale. 

“Although the property has been utilized as office for the last decade, it is situated on I-T zoned land, which generated substantial interest among local investors, and ultimately allowed Northmarq to maximize proceeds for The Men’s Wearhouse,” Northmarq’s Chase Dominguez, who brokered the sale, said in a statement.

“This versatility creates an opportunity for the buyer to reposition the asset and capture evolving demands of the market.”

The single-story buildings, constructed in 1999 and renovated in 2012, sit on 7.7 acres.

Dollinger, founded in 1989, invests in multi-tenant R&D, industrial flex, multifamily and retail properties for long-term ownership, according to its website.

The 2.4 million-square-foot office market in Fremont was 18.2 percent vacant in the first quarter, according to CBRE. 

Fremont joins the South Bay and suburban office markets in outperforming San Francisco and Oakland, where office vacancies stood respectively at  36.7 percent and 30.5 percent.

In February, Dollinger was prepared to sell a 146,000-square-foot office building in the Southern California city of Brea for $27 million, or $185 per square foot, 20 percent less than it paid five years ago.

— Dana Bartholomew

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