CBRE, Inc. and Cushman & Wakefield announced today that the two companies jointly represented AT&T, the largest U.S. telephone company, in the sale of the 2-million-square-foot AT&T office complex, located at 2600 Camino Ramon in San Ramon, California. Buyer was San Ramon-based Sunset Development Company and New York City-based MetLife.
Sunset, which once owned the land where the office complex sits, and MetLife, the largest U.S. life insurer, plan to redevelop the complex, part of the thriving Bishop Ranch, to attract additional tenants starting this year, San Ramon-based Sunset said in a statement.
The AT&T complex was designed by Skidmore, Owings & Merrill and features four wings of almost half-a-million square feet each, a central amenity hub, conference facilities and dining space. The property is thought to be the largest existing block of square footage in one Class A office building in the state of California.
As part of the sales transaction, AT&T will keep 800,000 square feet of office space in a long-term leaseback. The lease with AT&T makes the company the largest tenant in Bishop Ranch.
“This was an incredibly complex transaction with endless moving parts, which is understandable, given the size of the building and all of the issues surrounding the negotiation,” said John C. Cushman III, Co-Chairman of the Cushman & Wakefield Board of Directors.
“The sale/leaseback transaction involving the largest office building in the state of California could never have happened without the incredible teamwork of the committed, hands-on professionals from AT&T, MetLife, Sunset Development, CBRE and Cushman & Wakefield,” Cushman added.
“The opportunity to reposition an asset of this size and quality, and to be able to create a truly unique environment to attract new tenants was compelling. But in combination with the long-term lease commitment by AT&T, this really was a one-of-a-kind investment opportunity and was highly sought after by capital,” said Sean Sullivan, Executive Vice President of CBRE, Inc.
The value of the transaction has not been disclosed.
In addition to Cushman, representing AT&T in the transaction was Executive Director Roger Gage and Director Michael McMillan of the Cushman & Wakefield Silicon Valley office, CBRE Senior Vice Presidents Christopher Adams and Kirk Beebe, Executive Vice President Sean Sullivan, and Transaction Manager Troy MacDonald.
According to John Cushman, “The team effort also extended well past the entities mentioned above and included Miller Starr Regalia, Gensler, Kier & Wright and First American.”