Alameda tech hub shopping spree: $232M in 2 months

One developer pays $129 million, another pays $102 million for office buildings

ALAMEDA >> An office building shopping spree in Alameda launched by two developers has reached nearly $232 million in less than two months, a remarkable stretch of property purchases in an East Bay tech hub.

Since late May in Alameda, Paceline Investors and Invesco Real Estate each have spent more than $100 million and both have bought several office buildings starting with a series of Invesco purchases in the East Bay city.

This section of Alameda teems with tech, biotech, and advanced manufacturing companies, a combination of firms that is drawing heated interest from real estate investors who anticipate long-term stability for these kinds of companies.

Paceline Partners completed the most recent deal in the Harbor Bay area of Alameda for more than $60 million.

Here are Paceline’s recent transactions in Alameda, according to documents filed with the Alameda County Recorder’s Office.

• $60.5 million for two big office buildings, one at 1321 Harbor Bay Parkway and the other at 1351 Harbor Bay Parkway, the most recent purchase. The 1321 Harbor Bay building totals 53,000 square feet and the 1351 Harbor Bay building totals 94,000 square feet. Penumbra, a medical device maker, leases both buildings. This purchase was completed on July 2, the public records show.

• $31.75 million for 1420 Harbor Bay Parkway, a building totaling 121,600 square feet. Abbott Diabetes Care is a tenant in the building.

• $30.1 million for 1451 Harbor Bay Parkway, a building that totals 86,100 square feet. Kaiser Permanente Alameda has an office there.

• $7.4 million for 1350 S. Loop Road, a building totaling 38,900 square feet. TRIC Tools, a pipe repair and equipment maker, is a tenant.

These properties aren’t the only ones in Alameda that have commanded the interest of buyers lately.

On May 26, Texas-based Invesco Real Estate paid $102.1 million for six properties in Alameda in the same area as the sites that Paceline Investors purchased.

Oakland-based srmErnst

Development Partners, a veteran real estate firm, was the seller of the halfdozen parcels that Invesco Real Estate bought, the county documents show.

In the case of the Paceline purchases, each of the four transactions involved a different seller.

Redwood City-based

Dollinger Properties, an active player in Bay Area commercial real estate, was the seller in the July 2 deal. Adam Lasoff and Johnny van der Velden, brokers with JLL, a commercial real estate firm, arranged the most recent $60.5 million purchase of the buildings at 1321 Harbor Bay and

1351 Harbor Bay.

Investors are also grabbing big commercial buildings in Santa Clara County and San Mateo County whose tenants are tech, biotech, medical device, or life sciences companies.