FREMONT – The large Fremont office town in the neighborhood that defrauded investors and tech titans was bought from a jailed developer for his role in a recent college admissions scandal.
Mega developers Trammell Crow and Lincoln Property have teamed up to buy two buildings in the Ardenwood area of Fremont for $ 85 million, according to filings November 23 filed with Alameda County officials.
According to official state government business records, the seller was an affiliate company controlled by Robert A. Flaxman, chief executive officer of Orange County-based Crown Realty & Development.
In 2019, Flaxman was sentenced to a month in prison along with 250 hours of community service and a $ 50,000 fine for helping his daughter cheat on her entrance exam as part of a widespread college admission scandal. Actresses Felicity Huffman and Lori Loughlin were also briefly jailed for their roles in the scandal.
Trammell Crow and Lincoln Property, through affiliate office owner Paseo Kaiser, bought the buildings with cash, county records show.
One of the newly purchased buildings is located at 6900 Paseo Padre Parkway and the other is at 6801 Kaiser Drive in Fremont, according to county appraisals.
The Fremont Ardenwood area is home to several technology and life sciences companies, which in turn has generated interest from developers and real estate investors.
Meta Platforms, a tech titan with Facebook in its apps, rents at least 10 buildings close to or blocks away from buildings bought by Trammell Crow and Lincoln Property.
As of the end of 2019, Facebook has leased at least 1.27 million square feet in the Fremont-Ardenwood area. Much of this was leased from legendary developers Peery Arrillaga and the Sobrato Organization.
Other tech companies in Ardenwood include Electronics for Imaging, HID Global, and Kyocera SLD Laser.
Pharmaceutical or biotech firms such as Boehringer Ingelheim USA, Nueralink, and Anaspec have rented offices nearby.
The main tenant of the newly acquired building is TE Connectivity, which provides high-tech connections and sensor devices for a variety of industries.
Together, the buildings, bought by Lincoln Property and Trammell Crow, are 185,700 square feet. According to PropertyShark, the 6900 Paseo Padre building is 97,700 square feet and the 6801 Kaiser office is 88,000 square feet.
The Ardenwood area in Fremont is considered attractive because it is close to the technology hubs in Santa Clara and San Mateo counties, and close to the East Bay and South Bay workforces.
Flaxman, the seller, appears to have made a hefty profit on the $ 85 million deal.
In mid-2021, the estimated value of the newly purchased site in Fremont was $ 51.7 million. This means that the purchase price was 64% higher than the last appraised value of the property.