SAN MATEO, CA—Woodstock Development purchased 1840 Gateway Dr. in 2006. The class-A 70,000-square-foot office building was sold in 2014 to Westbrook Partners upon renovating the project.

Monday Properties recently acquired the property with just 20% occupancy. The off-market transaction closed at $25 million, GlobeSt.com learns.

“The building is 20% occupied in a 92% leased market, so the plan is to invest in common areas and tenant areas to deliver top-quality space for tenants to lease. Our research points to 55-plus tenants in the market with a total immediate demand of 500,000 square feet,” Brendon Lydon, senior vice president of acquisitions for Monday Properties, tells GlobeSt.com. “Additionally we have the ability to place three building-top signs that face busy Highway 92, which is a nice differentiator for the asset.”

The property is located in the Mariner's Island district, at the apex of Highway 101 and State Route 92. That 500 feet of frontage along State Route 92 has an average of 128,000 daily commuters and is in close proximity to San Francisco International Airport. The strategic central San Mateo County location also offers proximity to multiple retail amenities.

“This acquisition is a notable accomplishment for Monday's West Coast team and highlights our continuing efforts to invest capital in Northern and Southern California major markets,” said Phil Cyburt, managing partner for Monday Properties. “We see this as a well-located asset in a high-growth market and a unique opportunity to reposition the office building as we are buying the property with only 20% of the building occupied.”

The building is surrounded by ample surface parking, landscaping and patio space extending from the newly renovated lobby. There is also an on-site fitness facility available for tenants.

This is the first deal that Lydon has executed on since joining the firm earlier this year. In his role, he is responsible for identifying acquisition and development opportunities within key western markets including Northern California and the Pacific Northwest.

“His strong expertise in acquisitions and capital markets, as well as his institutional investment experience, will help boost the firm's investment portfolio and provide greater reach into these markets,” said Anthony Westreich, founding managing partner for Monday Properties.

Founded in 1998, Monday Properties is an owner, operator and developer of real estate with a primary focus on supplied-constrained markets and value-add real estate opportunities in growth markets. Since 2002, Monday Properties has completed more than $13 billion in value in 60-plus separate transactions, representing 28 million square feet.