Concord office building is bought by investment venture

CONCORD — A big office building near downtown Concord has been
bought by a development company and a real estate equity firm.

Sutter Square has been bought for $30.9 million, according to
the seller, San Ramon-based Meridian, a real estate development and
investment firm.

The buyer was a venture of Iron Point Partners, a Washington,
D.C.-based real estate equity firm and Barker Pacific Group, a Los
Angeles-based real estate investment and development company.

The nine-story Sutter Square office building totals 175,000
square feet and is located at 1800 Sutter St. near the Concord BART
station and the city’s downtown district.

“Below-market rent and occupancy provided an opportunity for
Meridian to purchase this asset as part of our value-add office
investment strategy,” said Dan Rosenbaum, a senior vice president
with Meridian. “We made significant improvements to the
property.”

Meridian bought the office building in 2017, paying $26.2
million, according to Contra Costa County public property
records.

“We were able to complete an extensive list of renovations and
leasing in just over two years of ownership,” said Linda
Shoemaker, a Meridian vice president.

Colliers International commercial real estate brokers Scott
Ellis and Eric Erickson have been signing up tenants for the office
building. Colliers brokers Brad Idleman and Andy Zighelboim
arranged the property purchase.

When Meridian bought the building it was 78 percent occupied,
and the offices now are about 90 percent occupied as a result of
Meridian’s and Colliers’ leasing efforts. Meridian invested
more than $4 million to upgrade the building in a wide-ranging set
of renovations.

“The sale of this asset marks our continued efforts to add
value to office buildings in the Bay Area,” Rosenbaum said. “We
are still looking for more acquisition opportunities throughout
California, the Pacific Northwest, and the Southwest.”

Source: FS – All – Real Estate News 1
Concord office building is bought by investment venture