News

Sleepy Hollow Investment Co. has sold a 14-building Bay Area office portfolio for $130 million.

The buildings, totaling 661,319 square feet of office space, are located in the East Bay, Sonoma County and Santa Clara. Five different buyers purchased the buildings: Eagle Canyon Capital, Square I, STG Group, Long Market Property Partners, and the Lindsey family trust. The portfolio sale, which closed last year, was among the largest transactions by square footage in the Bay Area. The properties are 92 percent occupied and include 132 tenants. Brokers Eric Fox, Michael Speers and Steve Hermann of Cushman & Wakefield represented the seller in the deal. Whiff Collins of Cushman was also an adviser on the transaction.

"I'm very proud of a terrific 25 year run with this portfolio for my investors and my team. We achieved incredible returns despite several difficult market cycles, and we thrived in multiple locations. Our tenure culminated in a timely exit, with a great execution by the Cushman team to quality buyers who will do a wonderful job with these great properties going forward," said Adam Henderson, CEO of Pleasant Hill-based Sleepy Hollow Investment Co. in a statement.

Speers said that the properties traded between $145 to $325 per square foot. The buildings have an average rent around $25 per square foot, about 15 percent below market rate, he said. Tenants include financial firms, law firms and insurance companies. Both a single buyer for the portfolio and multiple buyers were considered for the properties. Multiple buyers were ultimately seen as a better choice for both risk and pricing.

“Marketing a geographically diverse portfolio required our team to access both institutional and private capital markets. The marketing team’s ability to expand the buyer pool mitigated transaction risk and increased value,” Fox said in a statement.

Speers said that the Bay Area's strong economy continues to draw investors, but they are more careful given the duration of the current growth period. "Buyers are being more selective in what they pursue," he said. "The leasing market is still strong." The buildings sold include:

• 6375, 6377, 6379 Clark Avenue, Dublin, sold to Square I for a total of $10 million
• 6465-6557 Sierra Lane, Dublin, sold to Square I for $13.3 million
• 25 Orinda Way, Orinda, sold to Long Market Property Partners for $8.4 million
• 2300 Contra Costa Blvd., Pleasant Hill, sold to Eagle Canyon Capital for $24.5 million
• 18 Crow Canyon Court, San Ramon, sold to Eagle Canyon Capital for $10.6 million
• 2355 San Ramon Valley Blvd., San Ramon, sold to Eagle Canyon Capital for $2.9 million
• 2333 San Ramon Valley Blvd., San Ramon, sold to Eagle Canyon Capital for $9.2 million
• 3510 Unocal Place, Santa Rosa, sold to STG Group for $9.4 million
• 3140 Alfred Street, Santa Clara, sold to the Lindsey family trust for $9 million
• 1600 Riviera Avenue, Walnut Creek, sold to Eagle Canyon Capital for $32 million