12:10 pm

  Local News
  State / National / World
  Opinion / Letters
  Arts / Entertainment
  Submit Event
  Comics / Games
  DJ Designers
  Advertise With Us
  About Us
San Mateo County accepts $90 million bid for Circle Star towers
May 21, 2014, 05:00 AM By Michelle Durand Daily Journal

San Mateo County looks poised to turn a roughly $50 million profit on a pair of office towers it purchased for $40 million dollars to escape pricey leases for departments scattered elsewhere but never actually occupied.

GC Net Lease (Rancho Cordova) Member, LLC submitted the winning $90.1 million bid for 1 and 2 Circle Star Way, known collectively as Circle Star Plaza, during a public auction by the Board of Supervisors Tuesday afternoon.

One other sealed bid submitted was $88,488,888.88, said county spokesman Marshall Wilson.

Circle Star Plaza includes two four-story office buildings in the city of San Carlos and a three-story parking garage that straddles a small part of Redwood City. One tower is 103,948 square feet and the other 103,904 square feet.

The county purchased the building for $40 million in 2011 as a way to relocate departments and 911 dispatch and spent about $7 million more on improvements and management. After buying the buildings, the county’s space needs downsized and officials learned that making them seismically compliant would cost more than building an entirely new facility. Instead, the county leased first one and then both towers to SoftBank, a telecommunication and mobile company which owns a majority of Sprint Nextel. The county estimated standing to bring in more than $6 million in yearly revenue and more than $30 million over the seven-year life of the agreement.

In 2013, county officials began mulling a sale and opened up the bidding process earlier this year with an $85.5 million minimum.

Commission payments up to $600,000 will come from the sale proceeds and due diligence costs up to $250,000 will come out of either the sale or the general fund.

The sale closes May 28 and the profits will go into the county’s general fund budget, Wilson said.

(650) 344-5200 ext. 102



Tags: million, county, circle,

Other stories from today:


Print this Page Print this Page  |  Bookmark and Share
<< Back
Return To Archives

Daily Journal Quick Poll
How long will the Donald Trump presidential campaign last?

A couple more months
At least until the first primary
Early spring 2016
Until the nominating convention
All the way until the election
All the way until the election, as an independent candidate


Ashley Madison CEO steps down in wake of hacking
NEW YORK — The CEO of the company that runs adultery website Ashley Madison is stepping down in th..
Erika aims for Dominican Republic after 4 killed in Dominica
SANTO DOMINGO, Dominican Republic — Authorities in the Dominican Republic began to evacuate people..
200 feared dead in latest migrant disaster off Libya's coast
ZUWARA, Libya — Libyan authorities were collecting the bodies of migrants who drowned off the west..
Austrian officials: 71 migrants likely suffocated in truck
VIENNA — Police arrested several people believed to be part of a human smuggling operation in conn..
More >>  
©2015 San Mateo Daily Journal
San Mateo County marketing