In a joint venture with MetLife Inc., Sunset Development Company has purchased the two million square foot AT&T campus in San Ramon — that it originally sold as an undeveloped property to Pacific Bell in 1983 — for more than $250 million in a sale-leaseback deal. AT&T has agreed to remain a tenant in about the half of property at 2600 Camino Ramon in San Ramon where it will continue operating its regional headquarters; the length and terms of the lease were not disclosed. Sunset Development also has plans to develop City Center, a 500,000-square-foot shopping and entertainment development with 500 housing units, across the street from the AT&T building, according to a San Francisco Business Times article.
"This acquisition recaptures a well-developed property in the heart of Bishop Ranch," said Alex Mehran Jr., president and chief operating officer of Sunset Development Company. "It provides us with a significant lease from AT&T along with one million square feet of office space that is available and of the highest quality in the Bay Area. Over the longer horizon, the project's adjacency to Bishop Ranch's City Center and San Ramon's North Camino Ramon Specific Plan area provides numerous master-planning opportunities that will benefit all tenants and visitors of Bishop Ranch."
Dallas-based AT&T said last year that it's open to the sale of some of its peripheral assets, including wireless towers, according to a Businessweek article. Sunset Development and New York-based MetLife, the largest U.S. life insurer, plan to redevelop the complex to attract additional tenants starting this year. The sale was financed by Wells Fargo, with Eastdil Secured advising Sunset Development on the acquisition and in arranging debt and equity capitalization.
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