Real Estate

Nome Capital Snags Pleasanton Office Hub for $152M, Below Value

Nome Capital-led group acquires Pleasanton office campus for $152M, 33.7% below assessed value, signaling market confidence.

By Tal Alexander

5/15, 11:54 EDT
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Key Takeaway

  • Nome Capital Partners leads a group in purchasing Pleasanton Corporate Commons for $151.8M, significantly below its assessed value.
  • The 595,600-square-foot office campus acquisition reflects a price of $255 per square foot.
  • The deal includes financing from UBS with a $35M loan and additional borrowing of $65.8M from Citi Real Estate Funding and Bank of America.

A Strategic Acquisition in Pleasanton's Office Market

An investor group led by Nome Capital Partners has made a significant move in the commercial real estate market by acquiring a four-building office campus in Pleasanton, California, for $151.8 million. This acquisition, reported by SiliconValley.com, involves the Pleasanton Corporate Commons located at 6200, 6210, 6220, and 6230 Stoneridge Mall Road. The sale reflects a notable transaction in the East Bay property market, previously owned by TPF Equity REIT, an affiliate of Connecticut-based UBS Realty Investors. The purchase price translates to $255 per square foot for the 595,600-square-foot Class A complex and an additional 1.2 acres of land, marking a significant investment in the region's office space amidst evolving market dynamics.

Below Market Value Purchase

The acquisition price of $151.8 million is particularly striking given that it is 33.7 percent below the campus' assessed value of $229.3 million as of early last year, according to county tax records cited by SiliconValley.com. This strategic purchase by the Nome-led investor group not only highlights the potential for value investment in the current market but also raises questions about the valuation dynamics at play in the Pleasanton area and the broader East Bay real estate market. The office hub, boasting amenities such as new conference and fitness centers, a bocce ball court, and EV charging stations, represents a modern workplace environment that could attract high-profile tenants.

Nome Capital's Growing Portfolio

Nome Capital Partners, under the leadership of Rohit Kumar, has been actively expanding its real estate portfolio, as evidenced by its recent acquisitions. In 2021, the firm purchased a 127,000-square-foot office building in Alameda for $79.5 million, and in 2020, it acquired a 10-story office tower in Torrance for $55.5 million. These purchases, along with the latest Pleasanton Corporate Commons acquisition, underscore Nome Capital's investment strategy focused on prime office spaces in strategic locations. The firm's ability to secure financing for these deals, including a $35 million loan from UBS for the Pleasanton purchase and additional borrowing from Citi Real Estate Funding and Bank of America, demonstrates strong confidence from financial institutions in Nome Capital's market approach.

Implications for the Pleasanton Office Market

The acquisition of Pleasanton Corporate Commons by Nome Capital Partners signals a potentially transformative moment for the Pleasanton office market. The below-market purchase price suggests that there may be undervalued opportunities in the area, possibly due to shifts in office space demand post-pandemic. With tenants like 10x Genomics, Blackhawk Network, and Workday, the campus is positioned as a hub for innovation and business growth. This move could spur further investment and development in Pleasanton and the surrounding East Bay area, as investors and developers reassess the value and potential of office properties in suburban markets.