Amstar buys The Waterfront at Harbor Bay, in Alameda, California’s Harbor Bay Business Park for $46M
[GBP Note: See related articles for more information:
Harbor Bay Business Park Property Fetches $46M
PM REALTY GROUP AWARDED PROPERTY MANAGEMENT ASSIGNMENT FOR THE WATERFRONT AT HARBOR BAY ]
Alameda, CA (May 31, 2012) – Amstar today announced the purchase of The Waterfront at Harbor Bay, a 380,000-square-foot, Class “A” office park in Alameda, California. The purchase price was not disclosed. The property is comprised of five Class “A” office buildings and one Class “A” light assembly and distribution building on 26 acres within the Harbor Bay Business Park. Situated on the eastern side of the San Francisco Bay, the 325-acre Harbor Bay Business Park (www.harborbay.com) is an unparalleled location that offers waterfront exposure in a business park setting.
Amstar intends on enhancing value through a proactive management and a lease-up strategy that takes advantage of improving market fundamentals and the high barriers to entry in this office market. Additionally, Amstar intends to pursue Energy Star Certification by completing several capital improvement projects that support energy efficiency. Further, cosmetic and deferred maintenance projects will be completed.
The property was originally constructed for Ascend Communications / Lucent Technologies and contains many attractive amenities that are not found in competing buildings such as upgraded HVAC, significant electrical capacity, a basketball court, an on-site restaurant, a workout facility and showers/lockers in all the common area restrooms.
“The acquisition of The Waterfront illustrates Amstar’s current strategy of acquiring high-quality and well-located office properties in high growth markets that are underutilized and restoring them to their full potential. We are already extremely encouraged with the level of tenant interest and believe our investment strategy will be successful at the property,” said Amstar Managing Director Scott Gibler.
Waterfront is currently 82% occupied, however occupancy is expected to drop to 68% by the end of the third quarter which provides Amstar the opportunity to lease and stabilize the property at higher rents. The best-in-class property has historically attracted blue-chip tenants including Citibank, JP Morgan Chase, Kone, Farmers Insurance, Webcor and ABB Concise, the nation’s largest distributor of contact lenses.
Amstar selected PM Realty Group to serve as the property manager and retained Ryan Hattersley of Cushman & Wakefield to manage the leasing efforts.
“My team is very excited to be handling the leasing at The Waterfront for Amstar. We expect the Harbor Bay market to significantly benefit from the tightening Emeryville, Berkeley and Oakland markets over the course of the next 12 to 24 months and we are already experiencing increased tour and leasing activity as a result of these improving market fundamentals,” said Hattersley.
Waterfront at Harbor Bay offers views of the San Francisco skyline and a Central Bay location, with immediate and convenient access to Highway 880, the Oakland International Airport and the west coast FedEx hub, the Bay Area Rapid Transit (BART) and a commuter ferry to Downtown San Francisco.
Amstar Advisers, LLC is a global investment manager focused on creating value for its clients through the implementation of sound real estate-related investment strategies. The firm is an affiliate of, and is commonly managed by, Amstar Group, LLC, a real estate asset manager with over 25 years of experience in acquisition, development, and capitalization of office, hotel, multifamily, industrial, and retail properties within the major markets of the United States and select markets in Europe and Latin America.
Together, Amstar Advisers, LLC and Amstar Group, LLC, collectively referred to as “Amstar”, have approximately $1.7 billion in assets under management. Amstar’s core investment strength lies in maintaining disciplined and diligent underwriting while decisively taking advantage of opportunities in a rapidly changing investment environment. Amstar Advisers, LLC is an SEC-registered investment adviser with approximately $750 million in assets under management. For more information on Amstar, go to www.amstar.com or contact Amstar Managing Director Rob Toomey at rob.toomey[at]amstar.com.
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