Overview
Cushman & Wakefield, as exclusive advisor, is pleased to present the opportunity to acquire the 100% fee simple interest in 1840 Gateway Drive, a 43% leased Class A, 70,098 square foot office building located in San Mateo, California (the “Property” or “1840 Gateway”). 1840 Gateway features highly improved creative interior finishes, an extensive glass line, prominent location on Highway 92 and recently renovated gym facility with showers, and a multi-story glass enclosed lobby. Approximately 75% of the square footage has been finished as high-end creative space with renovated restrooms and polished concrete floors which separates 1840 Gateway from its competitive set.
1840 Gateway’s steel-frame design with 100 PSI floor loads (floors 1-4), ±13’6”-15’ clear heights, ample power (±20 watts/sf), and zoning offers future optionality to convert all or part of the building to R&D/ life science. This is unique for an asset to have the potential to tap into all of tenant demand in the Peninsula office and R&D / life science markets. The Property’s flexible zoning also presents future optionality to redevelop the site to residential.
Investment Highlights
DISCOUNT TO REPLACEMENT COST
An investor has the opportunity to purchase a Class A office building in the San Francisco Peninsula at an attractive basis. Since its development, 1840 Gateway has been institutionally owned and maintained at an exceptional standard. Given the high quality of the Property, a lower basis will allow an investor to compete favorably in the market.
VALUE-ADD OR OWNER/USER OPPORTUNITY
1840 Gateway’s current improvements allow for an investor the opportunity to lease up a Class A building with minimal capital outlay in one of the Bay Area’s most dynamic submarkets, or for an owner/user to purchase the site for their own occupancy. There are limited opportunities in the Bay Area for users to purchase an office building, with immediate signage rights and availability.
MINIMAL CAPITAL OUTLAY
Current ownership has invested significant capital in building improvements including lobby renovations, exterior improvements, tenant improvements, new HVAC, and a renovated fitness center. Further, well over $150 psf was spent to renovate floors 2-4 including new bathrooms, corridors and high end premium tenant finishes.
EXCELLENT FREEWAY IDENTITY / BUILDING SIGNAGE
With prominent frontage along 92, the building enjoys significant identity along one of the most heavily traveled routes in the Bay Area, averaging more than 160,000 vehicles per day. Properties with freeway visible signage generate premium rents, and up to three building signs can be placed on the building, providing an attractive signage opportunity for tenants seeking brand recognition.
RESIDENTIAL DEVELOPMENT POTENTIAL
The site’s Executive Park zoning allows for a range of residential densities. This flexibility combined with the access to freeways, transit, and retail, as well as parks and recreation, make 1840 Gateway a potential residential development opportunity. Because the site’s current overlay is not designated for housing, potential investors should conduct their own research as it relates to potential re-development options.
