Harvest Properties, Cerberus Capital Buy Office Building in Bay Area for $114.5M
DALY CITY, CALIF. — Harvest Properties and an affiliate of New York City-based Cerberus Capital Management LP have purchased DC Station, a nine-story office building in Daly City, about seven miles southwest of San Francisco.
The purchase price and seller were not disclosed, but the San Francisco Business Times reports the partnership purchased the Class A asset from Deutsche Asset & Wealth Management for $114.5 million.
“Both Cerberus and Harvest see this as an opportunity to acquire a high-quality property at a compelling price and, ultimately, add value through thoughtful leasing activity as we capitalize on the changing demand drivers in the area,” says John Winther, managing partner at Harvest Properties, a real estate investment and management firm based in the Bay Area.
The 383,000-square-foot, LEED Silver-certified building is anchored by the global headquarters of Genesys, a tech firm that sells businesses both cloud-based and onsite software for customer experience and call center solutions.
According to Harvest Properties, the previous owner was marketing DC Station for sale as part of a mixed-use investment that included adjacent retail space and the Century 20 Daly City movie theater, but Harvest proposed separating the office building from the investment package and ultimately won the bid.
Built in 2001, DC Station features a seven-level parking garage and is situated directly off Interstate 280 and adjacent to the Daly City BART (Bay Area Rapid Transit) Station. The building was recently renovated and now includes an expanded lobby, new conference facilities, updated common areas and upgrades to its fitness center.
The new ownership has retained Simon Clark and Conor Famulener of CBRE to handle DC Station’s leasing assignment.
Based in Emeryville, Calif., Harvest Properties primarily focuses on purchasing real estate assets in Northern California in joint venture transactions. The company’s portfolio spans about 10 million square feet of office, industrial, retail and research & development properties in the Bay Area.
Founded in 1992, Cerberus Capital Management LP manages approximately $34 billion in credit, private equity and real estate assets.
— John Nelson