PLEASANT HILL — An East Bay real estate firm has bought a high-profile office building in Pleasant Hill from a group headed up by the owner of a big downtown San Jose hotel, a property brokerage said Wednesday.
The deal widens an East Bay property shopping spree by California Capital & Investment Group, which in recent weeks has bought a big office park in Walnut Creek and the office building in Pleasant Hill.
A principal executive with California Capital gained notoriety in 2011 when he wielded a loaded shotgun to hold off Occupy Oakland protestors that he feared might vandalize the historic office building his group owned at the time in downtown Oakland.
In the most recent deal, California Capital & Investment paid $38.5 million for The Terraces, a high-profile six-story office building at 2300 Contra Costa Blvd. in Pleasant Hill, according to CBRE, a commercial real estate firm that arranged the transaction.
Eagle Canyon Capital, a San Ramon-based real estate firm, sold The Terraces office building to California Capital & Investment.
Sam Hirbod, the principal owner of the Signia by Hilton hotel in downtown San Jose, formerly the Fairmont, is the primary executive of Eagle Canyon Capital. Hirbod recently reopened the San Jose hotel, which, when it was the Fairmont, was closed for a year amid economic woes and financial problems unleashed by the coronavirus.
The $38.5 million price for The Terraces is considerably higher than the building’s estimated value of $30.5 million as of mid-2021, as reported by the Contra Costa County Assessor’s Office.
CBRE brokers Scott Prosser, Jack DePuy, Joe Moriarty, Mike Taquino, Kyle Kovac, Giancarlo Sangiacomo and Alec Haley represented Eagle Canyon Capital in the sale of the Pleasant Hill building.
The Terraces was about 87% leased at the time of the purchase. CBRE brokers Adam Ebner and Kirk Beebe are the leasing advisors for the building.
“The Interstate 680 Corridor office market remains an attractive investment for stable, value-add opportunities that are closer to where workers reside,” said Prosser, a CBRE executive vice president.
Oakland-based California Capital & Investment a few weeks ago bought Walnut Creek Executive Park at 2125 Oak Grove Road in Walnut Creek.
California Capital is headed up by real estate entrepreneurs Phil Tagami and Len Epstein. Tagami confronted protesters in downtown Oakland in 2011 with a shotgun after it appeared they were about to vandalize the historic Rotunda office building.
Walnut Creek Executive Park, a 12-building office park with several addresses, was bought by California Capital for $49.6 million, county public records show. The office park totals 449,200 square feet.
California Capital may be seeking to find new investment opportunities after it sold a majority interest in the historic Rotunda office building at 300 Frank Ogawa Plaza in downtown Oakland.
In January 2022, California Capital sold the Rotunda, an icon of the Oakland skyline, through a deal valued at $93 million.
CBRE executives believe the Terraces office building that California Capital has just bought is in an excellent location.
“The Terraces has great identity from the I-680 freeway and benefits from being in walking distance from shopping, dining and entertainment in downtown Pleasant Hill and Walnut Creek,” Prosser said.