ALAMEDA – A large office building in Alameda, which is fully leased to a fast-growing medical products company, was purchased by investors in the Gulf region as part of a deal that expands the popularity of real estate shops in the city.
Nome Capital Partners, through its subsidiary Harbor Bay CA, has acquired an office building at 1310 Harbor Bay Parkway in Alameda, rented by Penumbra, a medical device manufacturer.
The 127,000-square-foot building was purchased for $ 79.5 million, according to filings on Aug. 31 with the Alameda County Registry.
Adam Lasoff, broker of JLL Capital Markets, a division of commercial real estate firm JLL, arranged the purchase of the property. Seth Siegel, a broker for real estate firm Cushman & Wakefield, was also involved in closing the deal.
According to county documents, srmErnst Development Partners built new offices and then sold the building to Nome Capital.
The newly purchased office building offers Penumbra a range of amenities: an outdoor courtyard, convention center, on-campus café, coffee bar and 391 parking spaces.
Nome Capital received $ 49 million in funding from New York-based Aareal Capital Corp. to finance the acquisition, according to Alameda County filings.
The purchase of Nome Capital expands on the dramatic rampant commercial real estate purchases in Alameda that occurred over a three-month period starting at the end of May.
Three real estate investment firms, Milpitas-based Nome Capital, Texas-based Invesco Real Estate, and San Francisco-based Paceline Investors, have collectively spent about $ 311 million to acquire a variety of Alameda properties, all in the Harbor Bay business district.
In addition to Nome Capital’s purchase of the Penumbra building for $ 79.5 million:
– Paceline spent $ 129.8 million to take over five buildings in Alameda.
– Invesco paid $ 102.1 million for six properties in Alameda.
The Harbor Bay section in Alameda is replete with tech, biotech and advanced manufacturing companies.
This combination of firms is of great interest to real estate investors who expect tenants to provide long-term stability.
Alameda-based Penumbra is an example of a life sciences company that is currently showing strong financial results.
In the case of Nome Capital’s most recent purchase, Penumbra had previously leased the building even before it was built. The lease was signed in September 2019, according to JLL’s Lasoff. Penumbra has recently moved to a new office.
In the 12 months ended June, Penumbra earned $ 15.9 million on $ 671.4 million in revenue, according to Yahoo Finance. In the 12-month period ending December 2020, Penumbra lost $ 15.7 million on revenue of $ 560.4 million.
The Harbor Bay area is considered favorable for development, according to Joe Ernst, president of srmErnst Development.
Alameda was an excellent municipality to work with, which allowed us to expand the Harbor Bay Business Park as it is rapidly becoming a center for research and development, primarily in the life sciences and medical technology, ”said Ernst.