S
C Properties has invested $37.5 million in a 235,000-square-foot office campus in San Mateo, purchasing the San Mateo Gateway from Kennedy Wilson for $160 per square foot. The deal marks a significant reduction from the $87.5 million paid by Kennedy Wilson five years ago, when the property was valued at $372 per square foot.

    The campus, comprising three-story buildings at 1800, 1810 and 1820 Gateway Drive, features a fitness center, on-site cafe, and upgraded common areas that are well-suited to the "flight to quality" workplace trend. At the time of sale, the property was 60% occupied.

    SC Properties Partner Kevin Phillips expressed enthusiasm for the acquisition, citing the previous owner's maintenance efforts and the potential for adding value to the asset. Brokers Gary Boitano and Clarke Funkhouser consulted on the deal and will lead office leasing efforts.

    San Mateo's office market is experiencing a slight increase in vacancy rates, with 20.1% of available space unoccupied as of June. In contrast, San Francisco's office market has seen a record-high vacancy rate of 37.3% in the third quarter, according to CBRE data. SC Properties manages $800 million in commercial and residential assets, having been founded as a brokerage in 1996.