The real estate company, which specializes in development and income-producing real estate assets, has entered a preliminary binding agreement to an unidentified qualified buyer to sell the land for $12 million. The Eccles Project consists of 7.4 acres of unimproved land at Eccles Avenue and Gull Road. Montgomery recently finished a Phase I environmental report, as well as a seismic refraction study and preliminary soils report, as a guide to development of the site.
After a 90-day property review period, the buyer will have 180 days to obtain all development permits, jointly in the names of the buyer and Montgomery, from the City of South San Francisco for the construction of a 180,000-sf or larger biotech building on the Eccles property.
Montgomery will be entitled to retain the $250,000 earnest money deposit, plus $15,000 per month buyer payments commencing after the property review period, if the purchase is not closed within 180 days after the expiration of the property review period.
According to Montgomery, this agreement is an important step in implementing its new strategy involving the Eccles Project, and the sale of the Eccles Project at this time may position Montgomery to purchase replacement properties in the lagging San Francisco to San Jose real estate market that will benefit its stockholders.
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