Newmark Brokers Sale of 76,649-SF Class-A Office in Downtown Redwood City Between Premia Capital and Shorenstein
Newmark has arranged the sale of 550 Allerton, a 76,649-square-foot, Class-A office building in Downtown Redwood City, California, the firm announced July 16, 2026. Premia Capital sold the property to Shorenstein in the transaction, with Newmark representing both parties. Financial terms were not disclosed.
Property and Transaction Details
Constructed in 2018, 550 Allerton is a six-story, institutional-quality office building situated in the heart of Downtown Redwood City. The property is currently 81% leased with an eight-year weighted average lease term. Gunderson Dettmer, a leading global law firm, serves as the anchor tenant and recently extended its lease, bringing its total commitment at the building to nearly 20 years.
The building features floor-to-ceiling glass, 14-foot ceiling heights, modern infrastructure and three levels of structured parking. Its location places it within a five-minute walk of the Redwood City Caltrain station and provides immediate access to Highway 101, offering connectivity to both San Francisco and Silicon Valley.
The Newmark capital markets team representing both buyer and seller was led by Executive Vice Chairman and President, Western Region Capital Markets Steven Golubchik, Vice Chairman Edmund Najera, Senior Managing Director Darren Hollak and Director Brendan Raney.
Seller and Buyer Commentary
"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," Golubchik said. "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."
Premia Capital Founder Mike Halow commented on the transaction. "We are happy to have built a beautiful property in our hometown, delivered solid returns to our investors and are now happy to bring on a great new ownership group in Shorenstein," Halow said. "We wish them tremendous success."
Hollak added that investor appetite for well-leased Peninsula assets remains strong. "Investor interest in high-quality, well-leased Peninsula assets is stark, particularly for properties that combine durable tenancy with upside potential," he said. "550 Allerton checks each of those boxes, especially given its location in a vibrant, transit-oriented downtown environment. As vacancy continues to compress, Silicon Valley assets in prime, highly-amenitized locations are poised to outperform."
Downtown Redwood City Market Context
Downtown Redwood City is home to a range of major occupiers, including Latham & Watkins, McKinsey and Kaiser Permanente, positioning the submarket as an established office destination on the Peninsula.
According to Newmark Research, the North Peninsula office market recorded 703,000 square feet of positive net absorption in the first quarter of 2026, marking its third consecutive quarter of occupancy gains — the longest such streak since early 2022. Gross absorption totaled 1.87 million square feet, 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.
Broader Bay Area Office Fundamentals
The Bay Area office market more broadly is benefiting from AI and technology occupier demand, an improving economic backdrop and limited new construction, which Newmark projects will place upward pressure on rents and increase competition for high-quality space. According to the firm, nearly 50% of global venture capital funding in 2026 to date has been captured by San Francisco-based AI firms, underscoring the sector's growth trajectory in the region.
Newmark Group, Inc. (Nasdaq: NMRK) reported revenues of more than $3.4 billion for the twelve months ended March 31, 2026, and operates from more than 185 offices with over 9,600 professionals across four continents.
Sources
Related Articles
Argosy Real Estate Partners and Bay Street Capital Acquire Light Industrial Property in Fort Myers for $3.7 Million
JLL Closes $62.7M Sale and $38.8M Freddie Mac Financing for Fort Collins Apartment Community
