DivcoWest Acquires Downtown Redwood City Office Building in Strategic Off-Market Deal
45,000-Square-Foot Anchor Lease Underscores Renewed Office Market Momentum
DivcoWest, a DivCore Capital company, has announced the acquisition of 1991 Broadway, a three-story, 66,000-square-foot boutique office building located in the heart of downtown Redwood City, California. The property was acquired from an owner-user through an off-market transaction, highlighting DivcoWest’s strong market relationships and ability to execute discreet, high-conviction investments in competitive urban markets.
Simultaneous with the acquisition, DivcoWest secured a long-term, 45,000-square-foot lease with Paul Hastings, a globally recognized law firm. Paul Hastings will serve as the building’s anchor tenant, bringing the property to 82% occupancy at closing, with three tenants in place.
The transaction reflects growing confidence in well-located, high-quality office assets, particularly in transit-oriented submarkets that offer access to amenities, housing, and talent.
Confidence Returns to the Office Leasing Market
According to DivcoWest leadership, the acquisition and lease execution signal a broader shift in tenant sentiment toward long-term office commitments—especially for buildings that support modern workplace needs.
“Office tenants are back and are clearly communicating that they are looking for future-forward workspaces for their employees,” said Gregg Walker, President of DivcoWest Real Estate Asset Management (DREAM). “They are also willing to make long-term lease commitments, which gives us renewed confidence in leasing up vacancy.”
Walker noted that 1991 Broadway is particularly well positioned within a downtown market where leasing momentum has strengthened significantly year-to-date. Companies are increasingly attracted to submarkets that allow them to scale efficiently while providing employees with convenient transit access, quality housing options, and a vibrant amenity base.
A Prime Downtown Redwood City Location
Located at the east end of downtown Redwood City’s pedestrian-friendly retail corridor, 1991 Broadway benefits from a highly walkable environment surrounded by restaurants, shops, and neighborhood services. The property is just a short walk from the Redwood City Caltrain station, providing direct commuter rail access throughout the Peninsula and into San Francisco and San Jose.
In addition to rail connectivity, the building offers immediate vehicle access to Highway 101 and is served by a comprehensive network of city, county, and regional transit options. This combination of accessibility and convenience makes the property especially appealing to professional services firms seeking to attract and retain top talent.
Downtown Redwood City continues to evolve as a dynamic employment hub, supported by mixed-use development, high-quality residential offerings, and ongoing public and private investment.
Paul Hastings Anchors the Building
The long-term lease with Paul Hastings represents a significant endorsement of both the property and the downtown Redwood City market. As a global law firm with offices across major business centers worldwide, Paul Hastings’ commitment reinforces demand for premium, well-located office space that supports collaboration, client engagement, and workplace flexibility.
The lease brings stability and long-term cash flow to the asset, while positioning DivcoWest to lease the remaining space in a market that is showing renewed signs of activity.
The Paul Hastings lease negotiations were led by Ham Southworth, Ken Rapp, and Morgan Griffith of CBRE, while Ben Paul of Cushman & Wakefield represented DivcoWest in the transaction.
Leveraging Deep Market Relationships
Beyond leasing success, the acquisition of 1991 Broadway highlights DivcoWest’s depth of market relationships and its ability to source opportunities outside of broadly marketed sales processes. The firm’s focus on off-market transactions allows it to move efficiently and selectively, often securing assets with favorable risk-adjusted return profiles.
This marks DivcoWest’s second off-market acquisition in the past three months. In September, the firm acquired a 137-unit apartment community in San Francisco through an existing relationship with a local developer—further demonstrating its cross-sector investment capabilities and strong local presence in Northern California.
These relationship-driven transactions align with DivcoWest’s long-term strategy of investing in supply-constrained, high-barrier markets with strong fundamentals and growth potential.
A Boutique Office Asset With Long-Term Potential
As a boutique office building, 1991 Broadway offers flexibility, identity, and scale that appeal to tenants seeking a more curated workplace environment. The building’s size and layout support a range of professional users, while its downtown setting enhances daily employee experience.
With strong in-place tenancy and limited remaining vacancy, DivcoWest is well positioned to capitalize on improving leasing conditions and continued interest in transit-oriented office locations.
DivcoWest is a real estate investment firm focused on creating value through the acquisition, development, and management of high-quality office, life science, and residential assets in select U.S. markets. As a DivCore Capital company, DivcoWest leverages deep market expertise, long-standing relationships, and an integrated platform to deliver long-term value for investors and partners.
The acquisition of 1991 Broadway underscores DivcoWest’s conviction in well-located office assets and its ability to execute complex transactions that align leasing, capital markets, and operational strategies.
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