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7/21/26
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Shorenstein has closed on a Bay Area office buy, acquiring 550 Allerton, a 76.6k sf, Class A property in the heart of Downtown Redwood City. The asset was sold by Premia Capital.
Constructed in 2018, 550 Allerton is a six-story, institutional-quality office building currently 81% leased with an eight-year weighted average lease term, anchored by leading global law firm Gunderson Dettmer.
Positioned within a five-minute walk of the Redwood City Caltrain station and immediate access to Hwy 101, the property offers premier connectivity across both San Francisco and Silicon Valley. The building features floor-to-ceiling glass, 14-foot ceilings, modern infrastructure and three levels of structured parking, catering to today’s evolving tenant demands for high-performance workplaces. Gunderson Dettmer recently extended its lease, bringing the firm’s total commitment at the building to nearly 20 years.
Executive Vice Chairman and President, Western Region Capital Markets Steve Golubchik, Vice Chairman Edmund Najera, Senior Managing Director Darren Hollak and Director Brendan Raney represented both parties in the transaction. The price was not immediately given out.
“550 Allerton was the first-ever opportunity to acquire a recently constructed asset in one of the Peninsula’s most dynamic and supply-constrained submarkets,” said Golubchik. “The property’s stable in-place cash flow, combined with meaningful lease-up potential, continues to resonate with investors seeking well-located assets positioned for long-term growth.”
Downtown Redwood City is home to a diverse tenant base, including major firms such as Latham & Watkins, McKinsey and Kaiser Permanente, reinforcing the submarket’s position as a premier office destination on the Peninsula.
According to Newmark Research, the North Peninsula office market recorded 703k sf of positive net absorption in Q1 2026, marking its third consecutive quarter of occupancy gains and the longest such streak since early 2022. Gross absorption totaled 1.87 msf — up 95.7% quarter-over-quarter — while vacancy declined to 20% as leasing momentum continued to build, led in part by growing demand from AI-related occupiers.
The Bay Area market in general is benefiting from AI and technology occupier demand, an improving economic backdrop and limited new construction, which is expected to place upward pressure on rents and increase competition for high-quality space. Nearly 50% of global VC funding so far in 2026 was captured by San Francisco-based AI firms alone, underscoring the rocket ship growth of the sector in the Bay over the past few years.
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