Dallas, Texas-based AT&T Inc. has sold its 1.8 million-square-foot office complex in the San Francisco Bay area to a joint venture between Sunset Development Co. and MetLife Inc.
The buyers intend to redevelop the project to create a "modern office environment," according to a company statement. In the deal, AT&T will leaseback about half of the space at the 2600 Camino Ramon campus in San Ramon, about 35 miles east of San Francisco.
"(The deal) 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," Alex Mehran, Jr., president and chief operating officer of Sunset, said in a statement.
The value of the deal was not disclosed.
Sunset Development sold the undeveloped property to AT&T in 1983. The complex was designed by Skidmore Owings and Merrill and includes four wings of almost half a million square feet each, a central amenity hub, conference center and dining space, according to the announcement.
The complex is located within Bishop Ranch, a 585-acre business park owned and operated by Sunset Development. Of the one million square feet of office space Sunset is gaining in this latest deal, about half will be leasable this year and the rest will be ready next year, the company said.
Other notable leases in Bishop Ranch include 400,000 feet to Pacific Gas and Electric; 400,000 feet to Bank of the West; 233,000 feet to General Electric Technologies; and 233,000 feet to Robert Half.
The acquisition is Sunset Development's first purchase of an existing asset and first equity partnership through MetLife's 49 percent stake in the property.
Note: Includes correction to previous post to clarify the office complex's location within Bishop Ranch.