The six-story 701 Gateway building was 93% occupied at the time of sale. Triple-net asking rates in the area are approximately $3 per sf per month. The sellers' broker, NAI BT Commercial managing director Gary Willard, tells GlobeSt.com that the immediate area is "exhibiting extremely strong leasing dynamics because it is the heart of an important biotech cluster. Genentech and Amgen are located in the neighborhood."
Tenants at 701 Gateway include Actuate Software, San Mateo Health and Solstice Neuroscience. Willard declined to comment on near-term rollover in the building but Actuate Software, the anchor tenant, has been in the building for several years and is believed to be nearing the end of its lease term. Given the demand in the market, that may present more opportunity than risk. Broadway Partners director of acquisitions Scott Sorensen declined comment for this story.
The price of 701 Gateway on a per-sf basis was approximately 30% higher than what Broadway Partners paid Hines for 801 Gateway, while rents over the past year have risen 12%, according to local brokers familiar with the market. Mike Moran, Clarke Funkhouser and Kevin Waldman of NAI BT Commercial were given the leasing assignment for 701 Gateway.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
