Hacienda Terrace in Pleasanton, a three-building office center at 4301, 4305, and 4309 Hacienda Drive that totals 303,000 square feet. A big office complex in Pleasanton has been bought, in a sign that investor interest in choice commercial properties is booming in one of the East Bay’s tech hubs.
PLEASANTON — A big office complex in Pleasanton has been bought, in a sign that investor interest in choice commercial properties is booming in one of the East Bay’s tech hubs.
Two real estate firms from Silicon Valley have teamed up to buy the office complex, which consists of three buildings in Pleasanton’s Hacienda Business Park.
An alliance of Menlo Park-based Spieker Investments and Palo Alto-based Keech Properties bought the office center through an affiliate called Spieker Keech Hacienda, according to Alameda County public records filed on May 5.
The real estate venture paid $58 million for Hacienda Terrace, which has addresses of 4301, 4305, and 4309 Hacienda Drive in Pleasanton, the county documents show.
The seller was Embarcadero Capital, a veteran real estate firm that bought the three-building complex in 2011, the county records show.
The purchase was arranged through Brian Lagomarsino, an executive vice president with Colliers, a commercial real estate firm; and Eastdil Secured, a real estate firm.
The three buildings together total about 303,200 square feet, according to a marketing brochure that Colliers circulated. Each building is five stories high.
“Hacienda Terrace is comprised of three Class A office buildings in the heart of Hacienda Business Park, the premier Pleasanton office location,” the marketing brochure stated.
The Spieker Keech Hacienda alliance also obtained at the time of the purchase a $36.5 million loan from CRED REIT Holdco, according to the county documents.
The CRED REIT lender is one of the subsidiaries of The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, a New York City-based financial services behemoth.
Several large purchases of commercial properties have occurred in Pleasanton lately, with two deals occurring near Stoneridge Shopping Center and two in Hacienda Business Park, including the purchase of Hacienda Terrace.
Among the other large Pleasanton deals besides Hacienda Terrace:
— 10x Genomics paid $29.4 million for an aging shopping center at 1701 Springdale Ave. in February. The life sciences upstart wants to replace the retail site with a new campus for its fast-expanding operations.
— Workday paid $172.5 million for six office buildings on Stoneridge Mall Road, including the tech firm’s existing headquarters, in March. The deal solidifies Workday’s Pleasanton footprint.
— A Florida-based investor paid $97.3 million for a huge industrial and office complex on Hacienda Drive in April. The complex is suitable for large logistics operations.
The most recent large Pleasanton transaction, involving the Hacienda Terrace purchase, points to rising commercial property values for prime office buildings in Pleasanton.
At the time the Spieker and Keech alliance bought Hacienda Terrace, the assessed value of the office complex was $43.3 million, the county documents show. This also suggests that Embarcadero Capital harvested a profit through the deal.
ServiceNow, a tech firm; a Morgan Stanley financial services office; and Sorenson Media, a publisher, are among the tenants in Hacienda Terrace.
During its years of ownership, Embarcadero Capital instituted upgrades to the complex.
“Fully renovated common areas” and “improvements to building entries, main lobbies, and elevators” were among the revamps that Embarcadero Capital undertook, according to the Colliers brochure.
