WALNUT CREEK, CA—The recognizable office fixture at the corner of Ygnacio and Main has been scooped up by Lowe Enterprises Investors in a joint venture with Cigna Realty Investors. The approximately 105,495-square-foot, four-story class-A office building has been acquired for $36 million or $350 per square foot, GlobeSt.com learns. The seller was the Pacific Eagle (US) Real Estate Fund.
“500 Ygnacio is well-located in an established business area in Walnut Creek. It has a diverse tenant base and offers an option for businesses to locate near residences and amenities,” said Brad Howe, co-CEO of Lowe Enterprises.
The building is located at 500 Ygnacio Valley Road, two blocks east of the Walnut Creek BART station and less than one-half mile from the Interstate 680/Highway 24 interchange regional transportation corridor. A host of downtown dining, shopping and entertainment options are in close proximity, including Broadway Plaza, the area's largest retail center approximately one-half mile south, which can be reached via a shuttle service available at the BART station.
“The building is exceptionally well located on the busiest corner in Walnut Creek,” Howe tells GlobeSt.com. “We intend to enhance the exterior appeal of the property with modern treatments and build on the property's strengths by modernizing the suites to maximize the space efficiency, enhancing the path of travel to improve the tenant experience.”
The building has many attributes that position it competitively in the market, including ample parking, large efficient floorplates, two parking entrances and exits, valet parking, elevators that go directly from tenant spaces to the three-level subterranean garage and 12 private tenant suite exterior balconies. Lowe Enterprises will improve the property built in 1988, with interior and exterior upgrades, and new building systems. This comprehensive capital improvement program will modernize the building, which will increase its value and improve its competitive position.
Among the plans being explored for the exterior are extensive landscaping to create shaded outdoor seating areas, new building arrival signage and furnishings for the tenant balconies. Interior corridors and common areas will be renovated with updated finishes and lighting.
As tenant spaces become available, those will be prepared as turn-key spec suites that may include exposed ceilings and concrete flooring at the entrances, carpet and paint. Current tenants include Bay Commercial Bank, Principal Financial, Old Republic Title and Transwestern.
CBRE's capital markets' debt and structured finance team arranged a $24.1 million loan for the acquisition of the building. Mark McGovern, Scott Peterson and Brian Cruz of CBRE's San Diego office arranged the seven-year variable rate loan on behalf of the borrower. Additional proceeds will be available for the capital improvement program.
At completion of the transaction, Lowe Enterprises assumed management of the building and Newmark has been engaged to provide leasing services. Lowe was represented by Manatt and Eisner Jaffe in this transaction.
“Walnut Creek is a solid market with office rents increasing approximately 10% in the last 12 months and significant construction of new residential communities including 126 units directly across the street from our building,” noted Howe.
WALNUT CREEK, CA—The recognizable office fixture at the corner of Ygnacio and Main has been scooped up by Lowe Enterprises Investors in a joint venture with Cigna Realty Investors. The approximately 105,495-square-foot, four-story class-A office building has been acquired for $36 million or $350 per square foot, GlobeSt.com learns. The seller was the Pacific Eagle (US) Real Estate Fund.
“500 Ygnacio is well-located in an established business area in Walnut Creek. It has a diverse tenant base and offers an option for businesses to locate near residences and amenities,” said Brad Howe, co-CEO of Lowe Enterprises.
The building is located at 500 Ygnacio Valley Road, two blocks east of the Walnut Creek BART station and less than one-half mile from the Interstate 680/Highway 24 interchange regional transportation corridor. A host of downtown dining, shopping and entertainment options are in close proximity, including Broadway Plaza, the area's largest retail center approximately one-half mile south, which can be reached via a shuttle service available at the BART station.
“The building is exceptionally well located on the busiest corner in Walnut Creek,” Howe tells GlobeSt.com. “We intend to enhance the exterior appeal of the property with modern treatments and build on the property's strengths by modernizing the suites to maximize the space efficiency, enhancing the path of travel to improve the tenant experience.”
The building has many attributes that position it competitively in the market, including ample parking, large efficient floorplates, two parking entrances and exits, valet parking, elevators that go directly from tenant spaces to the three-level subterranean garage and 12 private tenant suite exterior balconies. Lowe Enterprises will improve the property built in 1988, with interior and exterior upgrades, and new building systems. This comprehensive capital improvement program will modernize the building, which will increase its value and improve its competitive position.
Among the plans being explored for the exterior are extensive landscaping to create shaded outdoor seating areas, new building arrival signage and furnishings for the tenant balconies. Interior corridors and common areas will be renovated with updated finishes and lighting.
As tenant spaces become available, those will be prepared as turn-key spec suites that may include exposed ceilings and concrete flooring at the entrances, carpet and paint. Current tenants include Bay Commercial Bank, Principal Financial, Old Republic Title and Transwestern.
CBRE's capital markets' debt and structured finance team arranged a $24.1 million loan for the acquisition of the building. Mark McGovern, Scott Peterson and Brian Cruz of CBRE's San Diego office arranged the seven-year variable rate loan on behalf of the borrower. Additional proceeds will be available for the capital improvement program.
At completion of the transaction, Lowe Enterprises assumed management of the building and Newmark has been engaged to provide leasing services. Lowe was represented by Manatt and Eisner Jaffe in this transaction.
“Walnut Creek is a solid market with office rents increasing approximately 10% in the last 12 months and significant construction of new residential communities including 126 units directly across the street from our building,” noted Howe.
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