SAN RAMON, Calif.--(BUSINESS WIRE)--A joint venture of Sunset Development Company and MetLife Inc. has completed the purchase of the two million square foot AT&T campus at 2600 Camino Ramon in San Ramon. The buyers plan to redevelop the project and create a modern office environment with large blocks of space available for new tenants beginning this year. The sale includes a significant leaseback by AT&T. The acquisition marks Sunset Development Company’s first purchase of an existing asset and first equity partnership through MetLife’s 49 percent stake in the property.
Pacific Bell purchased the undeveloped property from Sunset Development Company in 1983 and, soon after, began construction of what would become its headquarters. Designed by world-renowned architects, Skidmore Owings and Merrill, the building includes many design and mechanical features that are still considered state-of-the-art and provide a workplace environment that fosters collaboration and technological innovation. The property includes four wings of nearly half a million square feet each, a central amenity hub, a world-class conference center and beautiful dining facilities.
“This acquisition recaptures a well-developed property in the heart of Bishop Ranch,” said Alex Mehran Jr., president and chief operating officer of Sunset Development Company. “It provides us with a significant lease from AT&T along with one million square feet of office space that is available and of the highest quality in the Bay Area. Over the longer horizon, the project’s adjacency to Bishop Ranch’s City Center and San Ramon’s North Camino Ramon Specific Plan area provides numerous master-planning opportunities that will benefit all tenants and visitors of Bishop Ranch.”
Bishop Ranch has signed several notable leases, recently, including 400,000 feet to Pacific Gas and Electric; 400,000 feet to Bank of the West; 233,000 feet to General Electric Technologies; and 233,000 feet to Robert Half. It also counts hundreds of small businesses among its tenants.
“Part of the attraction of Bishop Ranch is our ability to deliver to tenants the same amenities that large owner-occupier campuses bring to their employees,” said Ed Hagopian, executive vice president of Sunset Development Company. “This acquisition turbocharges that offering by increasing our square footage under management by more than 40% and adding a 200,000 square foot amenity hub that will serve all of Bishop Ranch. This project’s features will allow new tenants to enjoy world-class facilities without the cost of constructing underutilized private amenities.”
The transaction was financed by Wells Fargo. Eastdil Secured advised Sunset Development on the acquisition and in arranging debt and equity capitalization.
About Bishop Ranch
Established in 1978 by Sunset Development Company, Bishop Ranch is a 585-acre mixed-use business community comprised of 10 million square feet of primarily LEED certified office space in fifty buildings. More than 600 of the world's leading companies, innovative startups, and medical and dental practitioners make their home in the thriving professional business community of Bishop Ranch. The recipient of many awards including The Urban Land Institute’s Award for Excellence, Bishop Ranch is home to many Fortune and Global 500 companies, including AT&T, Chevron, General Electric and Toyota. http://www.bishopranch.com
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