Three Decades After Selling It From Telecom Giant, Sunset Development Reacquires 2-Million-Sq-Ft Bishop Ranch Property
A joint venture of Sunset Development Co. and MetLife Inc. has purchased the nearly 2-million-square-foot AT&T campus at 2600 Camino Ramon in San Ramon for a reported price of more than $250 million.
Sunset Development in 1983 sold the undeveloped property to Pacific Bell, now owned by AT&T, and began constructing what would become PacBell's corporate and later, AT&T's West Coast headquarters.
The venture, 49% owned by MetLife, plans to redevelop and modernize the project originally designed by Skidmore Owings and Merrill, and create large blocks of space in the supply challenged San Francisco Bay Area office market beginning this year. AT&T will lease back a "significant" portion said to be around 900,000 square feet of the property.
The property includes four wings of nearly half a million square feet each, build around a hub of common area that includes a conference center and dining facilities.
"It provides us with a significant lease from AT&T along with 1 million square feet of office space
that is available and of the highest quality in the Bay Area," said Alex Mehran Jr., president and chief operating officer of Sunset Development.
However, the project in the 585-acre Bishop Ranch also ties in with an ambitious plan by Sunset to create City Center, a new downtown for the East Bay suburban community of San Ramon comprised of 500,000 square feet of retail and about 500 new residential units, Mehran said.
Along with its proximity to San Ramon’s North Camino Ramon Specific Plan area, the site provides numerous master-planning opportunities in Bishop Ranch, which has signed several notable leases recently, including 400,000 square feet to Pacific Gas and Electric; 400,000 square feet to Bank of the West; 233,000 square feet to General Electric Technologies and 233,000 feet to Robert Half.
The transaction was financed by Wells Fargo. Eastdil Secured advised Sunset Development on the acquisition and in arranging debt and equity capitalization.
Please see CoStar COMPs #2932895 for more information about this transaction.