Newmark Orchestrates $162 Million Sale of The Plaza at Walnut Creek
Wednesday, Oct 23, 2024 11:30 am ET
1min read The Plaza at Walnut Creek, a 362,399-square-foot office complex in San Francisco's East Bay, has been sold for $162 million, marking the largest multi-tenant trophy office sale on the West Coast since 2022. Newmark Group, Inc. (Nasdaq: NMRK) advised on the sale, representing the seller, Clarion Partners, and facilitating the transaction with PSAI Realty Partners as the buyer.
The property's strong occupancy and rental rate gains since 2019 contributed significantly to its appeal to investors. Despite general pullbacks in the office sector, The Plaza at Walnut Creek maintained a 93% occupancy rate at the time of sale, with a market-leading occupancy of 91% over the last five years. This robust performance was facilitated by Newmark's leasing team, which successfully attracted and retained tenants.
The Plaza at Walnut Creek's strategic location and amenities also played a crucial role in attracting investors. Situated at the intersection of North California and Mount Diablo Boulevards, the property offers strong visibility to over 38,000 vehicles passing daily, along with convenient access to major freeways and proximity to Walnut Creek's dense amenity base. This prime location, coupled with the property's expansive window lines and views of Mount Diablo, creates an invigorating workspace that sparks creativity.
Newmark's marketing process generated significant investor interest, providing ownership with a wide range of potential suitors, including both foreign and state pension funds, as well as core-plus office capital. The Plaza at Walnut Creek's strategic design and layout, offering flexible and efficient floor plans, further enhanced its appeal to investors.
In conclusion, The Plaza at Walnut Creek's strong occupancy and rental rate performance, coupled with its prime location, amenities, and strategic design, made it an attractive investment opportunity. Newmark's expertise in advising on the sale and leasing of the property played a pivotal role in facilitating this significant transaction, demonstrating the firm's ability to navigate the complexities of the commercial real estate market.
The property's strong occupancy and rental rate gains since 2019 contributed significantly to its appeal to investors. Despite general pullbacks in the office sector, The Plaza at Walnut Creek maintained a 93% occupancy rate at the time of sale, with a market-leading occupancy of 91% over the last five years. This robust performance was facilitated by Newmark's leasing team, which successfully attracted and retained tenants.
The Plaza at Walnut Creek's strategic location and amenities also played a crucial role in attracting investors. Situated at the intersection of North California and Mount Diablo Boulevards, the property offers strong visibility to over 38,000 vehicles passing daily, along with convenient access to major freeways and proximity to Walnut Creek's dense amenity base. This prime location, coupled with the property's expansive window lines and views of Mount Diablo, creates an invigorating workspace that sparks creativity.
Newmark's marketing process generated significant investor interest, providing ownership with a wide range of potential suitors, including both foreign and state pension funds, as well as core-plus office capital. The Plaza at Walnut Creek's strategic design and layout, offering flexible and efficient floor plans, further enhanced its appeal to investors.
In conclusion, The Plaza at Walnut Creek's strong occupancy and rental rate performance, coupled with its prime location, amenities, and strategic design, made it an attractive investment opportunity. Newmark's expertise in advising on the sale and leasing of the property played a pivotal role in facilitating this significant transaction, demonstrating the firm's ability to navigate the complexities of the commercial real estate market.
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