Livermore Property Comes to Market
Submitted November 15, 2011, 10:19 PM
The 208,000 square-foot Pacific Corporate Center in Livermore has been posted for sale. It is at least the second largest Tri-Valley property to come to market this fall that is not distressed.
Offers are being accepted through Dec. 7.
“This property and the recent marketing of Dublin Corporate Center in Dublin are the first two examples of non-distressed sales in the Tri-Valley market in over two years,” said Andrew Schmitt, a first vice president with CB Richard Ellis in its Pleasanton office. “They mean that owners of real estate think that this region is starting to show some signs of stabilization.”
Pacific Corporate Center is located at 7005 Southfront Road, 7401, 7451 and 7501 Longard Road and 501 Lawrence Road.
Andy Zighelboim, a senior vice president for Colliers International in its San Jose office, is the lead listing broker. He declined comment for this story.
The Dublin Corporate Center is a 440,000 square-foot office complex that is being sold by New York City-based Tishman Speyer Properties. It was put on the market in October and has been projected to sell in the $225 a square foot range, or for about $100 million.
The new Livermore offering includes five buildings that are 93 percent occupied and projected to have $2.14 million in net operating income for the first fiscal year of the new ownership. Net operating income is projected to grow nearly 20 percent over the ensuing five years.
The offering includes contiguous land that is entitled for three additional office, R&D and light industrial buildings. This land could be developed into a total of 170,000 square feet.
The property is being sold with no offering price. There is existing debt on the complex totaling $17.6 million. The debt has an interest rate of 5.06 percent with a maturity date of July 2015.
More than 80 percent of the property is leased to FormFactor Inc. for its headquarters operation. FormFactor is a maker of devices used by semiconductor manufacturers to test integrated circuits. The company has invested more than $104 million in leasehold improvements and capital equipment in the project, according the offering documents.
FormFactor reported a $9.9 million loss for the third quarter on revenue of $52.1 million. That was an improvement over its $95.8 million loss in the third quarter of fiscal 2010. The company was founded in 1993 and is traded on the Nasdaq exchange under the symbol “FORM.” The company’s lease extends to August 2021.
The other 12 percent of the space is occupied by Cosco Fire Protection Inc., which designs, installs, repairs, services and inspects fire-suppression and life-safety systems. It does work for corporations, government entities and the military. Its lease runs until January 2018.
According to CB Richard Ellis’s third-quarter market report for the Interstate 680 corridor and Contra Costa County, the office/R&D market in Livermore has 2.67 million square feet. The vacancy is not quite 18 percent, and the average asking rent is $1.60 a square foot.
