Big Redwood City office park is bought, real estate market remains hot
REDWOOD CITY — A large office park in Redwood City has been purchased by a Southern California group in a deal that points to rising real estate values and a robust commercial real estate market in Silicon Valley.
The three-building campus is situated in a prime location, perched beside the Redwood Shores lagoon and near the office hubs of tech titans Google and Oracle.
Center Capital Partners, through an affiliate, paid $82.8 million for the office campus, according to documents filed Feb. 23 with the San Mateo County Recorder’s Office.
The campus has addresses of 1 Twin Dolphin Drive, 3 Twin Dolphin Drive, and 100 Marine Parkway, according to county property records.
Beverly Hills-based Center Capital Partners focuses on a range of real estate investments, according to the company’s LinkedIn description.
“Center Capital Partners is a private real estate investment platform focused on acquiring and managing high-quality assets in gateway, prime and growth markets,” the firm said on its LinkedIn page.
The newly purchased campus totals 144,400 square feet, according to commercial real estate site Compstak.
The 100 Marine Parkway building totals 79,800 square feet, the 3 Twin Dolphin office building totals 58,400 square feet and the 1 Twin Dolphin office building totals 6,200 square feet.
The recent deal indicates an increase in property values in Silicon Valley and Redwood City.
In 2015, Rockpoint Group, the seller, paid $65.6 million in 2015 for the campus, according to county documents.
The campus price this year was 26% higher than the 2015 price.
This indicates an average increase of about 3% to 4% per year, which exceeds the annual rate of inflation in the Bay Area during those years.
The campus is located across from the Oracle office center in the Redwood Shores area and a few freeway exits from a huge Google technology campus, also in Redwood City.
As one of the three buildings is very small, it is possible that part of the campus will be redeveloped.
San Mateo County and Santa Clara County have become popular areas for redevelopment of life sciences campuses amid uncertainty about how quickly businesses could return to the office in the wake of the coronavirus.
However, the new owner of the three-building campus in Redwood City does not list major redevelopment of commercial properties as an area of focus.
“Center Capital Partners has a long-term investment horizon and an emphasis on investing in community growth,” the company’s LinkedIn page reads.