Falcon Sells Single-Tenant Building for $38.5 Million
Falcon Real Estate has sold a high quality office/flex building for $38,500,000 on behalf of a syndication of U.S. and overseas clients. In addition to syndicating the transaction, Falcon acted as a co-investor and the general partner. The institutional buyer will hold the asset as a long-term investment.
The property, fully occupied under an original 20-year lease by a subsidiary of the Carl Zeiss Group, is located in the bay area of San Francisco, California. The Carl Zeiss Group is a global leader in the optical and opto-electronic industries with more than $7 billion in assets.
Located at 5160 Hacienda Drive, the 201,620 square foot, state-of-the-art property is situated on 13 acres of land and is within the 950-acre master planned Emerald Park development in the city of Dublin. The asset was built in 1998 and includes 634 parking stalls.
“We are very pleased with the performance of this investment having achieved a double-digit IRR for our investors” said Scott Sweeney, Executive Vice President with Falcon Real Estate. “This sale is indicative of Falcon’s overall corporate strategy for its clients. We seek out properties in prime locations, built to the highest quality standards and occupied with credit-worthy tenants. Core assets with these fundamentals perform better than other property types over the long-term.”
Falcon purchased the property in 2002 at a price of $36,090,000 on behalf of the syndication that was attracted to the modern facility by the long-term triple-net lease with Zeiss and the stable local real estate market.