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PLEASANTON, CA-Harsch Investment Properties of Portland has added to its Northern California portfolio with two acquisitions totaling $46 million. In the larger of the two transactions, the company paid CarrAmerica Realty Corp. $38.3 million for the two-building, 208,557-sf Hacienda West office development within the class A Hacienda Business Park here.

Built in 1986 on 14.16 acres, Hacienda West consists of one two-story office building and one three-story office building wrapped around a central courtyard at Hopyard Road and West Las Positas Road, which is near the junction of Interstates 580 and 680. A source with Harsch tells GlobeSt.com the property is 80% leased. Major tenants include Hewlett-Packard, Sun Microsystems, Standard Pacific Corp and Kaiser Foundation Health. The annualized triple-net asking lease rate is $24 per sf.

The acquisition is Harsch’s second in the Hacienda Business Park, an 875-acre master-planned development. In 1998, it acquired the 150,644-sf Stoneridge Business Center. “This acquisition gives us a stronger presence in the park, and positions us to take advantage of the improving economy in the East Bay market, which we believe in,” says Harsch president Jordan Schnitzer.

George Eckard and Grant Lammersen of Cushman & Wakefield in San Francisco and Ted Helgans and Gabe Arechaederra with Colliers International in Pleasanton represented both the buyer and seller.

The smaller acquisition was a 145,500-sf high-cube distribution warehouse in Sacramento that has been fully leased to Eagle Logistics since 2001. The building was developed in 2001. The acquisition price was $8.06 million, or $55.40 per sf.

The 10-acre site is adjacent to the existing 28-acre Natomas Commerce Center, a 560,000-sf master-planned development by Harsch that is 90% leased. Ground breaking for the final phase of Natomas–a one-story office and three multi-tenant flex buildings totaling 155,160 sf–is scheduled for Nov. 1. No preleasing has occurred. Completion is in March 2006.

“Ten years ago when John Shorey, our Sacramento regional manager, was with CB Richard Ellis, he advised us to buy the Natomas land. We waited too long, but eventually bought 28 acres. Now this acquisition adds the 10 acres back to the fold,” Schnitzer says. “This property completes the existing Natomas Commerce Center master plan and provides an opportunity for added value to our development.”

Other premier Sacramento projects owned by Harsch include the master planned, five-phase, 1.2-million-sf Riverside Commerce Center and the 350,000-sf Riverside Centre Office Park, both in West Sacramento.

Harsch Investment Properties acquires, manages and develops properties for its own portfolio. The company currently owns and operates 20 million sf in 130 office, industrial and retail properties in five Western states. Additionally, Harsch owns and manages more than 2,000 multifamily units.

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