They say timing is everything, but when it came to tech giant SAP’s lease at San Ramon’s Bishop Ranch, not even an 18-month delay could block the deal.
From the beginning, SAP was the perfect tenant for Bishop Ranch owner Sunset Development Co.: a first-tier technology company with hundreds of employees eager for the East Bay office park’s urban-like amenities. The fact that SAP was renegotiating its lease in Dublin, where its Sybase division occupied 405,000 square feet, did not deter Sunset.
“Bishop Ranch hoped and believed that someone of the stature of SAP in the technology industry would also endorse the location and the project,” said Ken Gilbert, who brokered the deal while at CBRE.
The SAP deal is the first validation of a big bet Sunset made that it could pull major tech companies to Bishop Ranch. In conjunction with MetLife, Sunset had bought 2600 Camino Ramon for $250 million in 2013. Sunset gained 1 million square feet to lease from the deal.
Bishop Ranch has been pulling out the stops to attract technology companies, offering bike and car share programs, a food truck park and more. The 2600 Camino Ramon building boasts floorplates up to 100,000 square feet. The new City Center retail complex under construction will offer 300,000 square feet of retail.
“We’re trying to combine the urban amenities in one place,” said said Sunset President Alexander Mehran, Jr.
Moreover, moving to 2600 Camino Ramon allowed SAP to reduce its leasing footprint to 145,000 square feet because it no longer had to lease space for a daycare, cafeteria and conference area since Bishop Ranch provides that.
The only sticking point was the timing: SAP could not move in until January 2017 after its Dublin lease had ended. But Sunset didn’t hesitate to commit, Mehran said.
“It was a huge coup for us,” he said.
SAP lease at Bishop Ranch
Location: 2600 Camino Ramon, San Ramon
Size: 145,000 square feet
Value: Approximately $52 million
Landlord: Sunset Development Co.
Tenant broker: Ken Gilbert of CBRE (now Cushman)