PLEASANTON — A large office campus in Pleasanton’s Hacienda business park has been bought by a Silicon Valley real estate company — in a deal that indicates a drop in commercial property values in that area.
The Britannia Business Center, an office and research complex, was purchased by Tarlton Properties, according to documents filed with the Alameda County Recorder’s Office on January 31.
Menlo Park-based Tarlton Properties, acting through an affiliate, paid $78 million for the office complex, property records show.
The Britannia Business Center has addresses 4125, 4155, 4255 and 4385 Hopyard Road in Pleasanton, according to county assessor’s office records.
The campus overlooks Hopyard and is located between Inglewood Road and Coronado Lane in Hacienda Business Park, one of the Bay Area’s premier mixed-use business parks.
The Britannia Business Center consists of four buildings and totals 291,600 square feet.
The seller was a subsidiary run by Virtua Partners, an Arizona-based real estate investment firm.
The purchase price of $78 million indicates a decline in property values for these types of office buildings in this section of East Bay.
According to a brochure released in late 2015, the campus was acquired in 2005 for $82.9 million.
The overall investment, which could have included debt assumption or campus upgrades and renovations, was estimated at $88.5 million for the transaction in 2005, the brochure says.
This means that the value of the campus has fallen by 5.9% over the past 17 years, using only the two purchase prices for comparison.
This contrasts sharply with the large increases in commercial property values in places such as Santa Clara County, San Mateo County and San Francisco over a similar period.
The brochure said the financial crisis of 2008 was one of the main reasons for the loss in value, which was due to the collapse of office rents in the East Bay during those years.
“During the 2008 recession, revenues began to decline as tenants lost and rental rates reduced,” the Virtua Partners brochure says.
It’s possible the new landlords will take a different approach to the current tenant mix, based on Tarlton Properties’ current expertise, according to a post on the property company’s website.
“Tarlton owns and manages over 1.6 million square feet of Class A life sciences and mixed-use properties in Silicon Valley and the East San Francisco Bay Area,” the website states.