Parkside Towers in Foster City Under Contract for $180M
Notable Deals January 6th, 2008Hines is in contract to sell its Parkside Towers office complex in Foster City. The complex is roughly 400,000 SF and is reportedly being sold to Harvest Properties and Invesco for roughly $180M ($452 psf). The complex is about 80% leased and includes tenants IBM, Axciom, and QuinStreet.
The project was purchased by Hines about two years ago from Equity Office Properties which built the project originally for Inktomi. Inktomi never occupied the complex and subsequently paid a $50M termination fee to get out of its lease.
I suspect after closing rents will move into the $40 NNN rent range and leasing agencies to be swapped from Cornish & Carey to possibly NAI BT Commercial.
Update (03/2008): The project was 99% leased at COE. A 91K SF lease to Rearden Commerce which was announced one day after the initial posting of this item brought the project up to 99% occupancy at the time of sale.
Tags: Axciom, Cornish & Carey, Foster City, Harvest Properties, Hines, IBM, Inktomi, Invesco, NAI BT Commercial, Parkside Towers, Quinstreet
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March 7th, 2008 at 10:14 am
To clarify, the project was 99% leased at the COE. The last transaction completed by Josh Rowell and Craig Kalinowski of Cornish & Carey was above $40 NNN on 91,000 square feet. The only remaining vacancy is retail space. Please verify your information prior to posting rumors.
March 7th, 2008 at 6:27 pm
Josh,
The Cornish & Carey press release announcing the 91,000 square foot lease to Rearden Commerce was issued on January 7th. The news didn’t show up in GlobeSt or CoStar until Jan 8-10th also. This post was written on January 6th.
Nonetheless, thanks for the comment clarifying the deal … more information is always better…