Office property deal extends Palo Alto hot streak

mALO ALTO » A big Bay Area investment group that seeks properties in hot tech markets around the country has bought an older office complex in Palo Alto, which itself has become a magnet lately for commercial real estate buyers.

G r a y ma r k Capit a l, through affiliate Fabian Way Owner, has bought a two- building office complex in Palo Alto, according to Santa Clara County documents that were filed on Dec. 23.

The office center, located at 3960 and 3980 Fabian Way in Palo Alto, totals 24,000 square feet and consists of two buildings.

San Francisco - ba sed Graymark Capital paid $15.7 million for the buildings, the county records show.

The transaction was arranged through brokers Kalil Jenab, Ben Paul, and Steven Jenab of commercial real estate firm Cushman & Wakefield, and broker Brad Martin with Stetson Earhart, a commercial real estate firm.

“The life sciences industry is performing well overall, with this submarket also displaying increased demand particularly from auto tech, food tech, and artificial intelligence companies,” said Paul, an executive managing director with Cushman & Wakefield.

Graymark intends to spend millions of dollars in a wide-ranging renovation of the office buildings to bring modernize them and create amenities likely to entice a new tenant, according to Cushman & Wakefield.

“Graymark’s plans for this strategic location come at the right time and will fulfill a critical need for market-ready and flexible lab space deliverable very soon,” Paul said.

Investors appear to hunger for Palo Alto buildings in a big way.