CONCORD — A big office complex in Concord has been bought in a deal that suggests property values have nosedived for Bay Area offices in the wake of the coronavirus-spawned business lockdowns.
Concord Corporate Centre has been bought for $20 million by an affiliate of Sierra Pacific Properties, a real estate firm controlled by the Seeno family, according to documents filed on Dec. 14 with the Contra Costa County Recorder’s Office.
That price is 68.5% below the $63.5 million that the sellers in the deal, Harbert Management, paid in 2017 for the two-building office complex.
Sierra Pacific Properties bought Concord Corporate Centre in an all-cash deal, the county records show. Newmark commercial real estate brokers Steven Golubchik, Edmund Najera, Jonathan Schaefler and Darren Hollak arranged the purchase of the office buildings.
The buildings are located at 1320 and 1390 Willow Pass Road in Concord, a short distance from a local BART station.
The office complex was 73% leased when Sierra Pacific Properties bought the property. The two buildings together total 346,700 square feet, according to Newark, a commercial real estate firm.
One of the buildings, One Corporate Center, is a seven-story structure built in 1983. The other building, Two Corporate Center, is a 10-story structure built in 1986.
The deal is an example of the collapse in values for Bay Area office buildings in the wake of the coronavirus lockdowns and the uneven return to the office even after the draconian government-ordered building closures were terminated.
“Concord Corporate Centre offers investors a unique opportunity to acquire a strategically positioned asset in Concord,” said Golubchik, an executive vice chairman with Newmark.
Sierra Pacific intends to undertake a significant upgrade to the office complex. The new owner plans to update and renovate both buildings’ amenities package and common areas.
“There is significant upside potential through tenant renewals and the lease-up of existing vacancies,” Golubchik said.