The PG&E office building at 650 O Street, part of a $25 million county acquisition approved Tuesday. Photo by Dylan Gonzales

Fresno County has approved a $25 million purchase of two office buildings at 650 O Street and 705 P Street, the Fresno County Board of Supervisors announced Tuesday.

The offices are currently being used by Pacific Gas and Electric Co (PG&E).

The acquisition includes around 102,580 square feet of space and a parking lot of roughly 189,185 square feet, and is expected to help meet the county’s growing office space needs and relocate the Fresno County Sheriff’s office administration. 

Veronica Stumpf, a real estate broker, said the $25 million price, or about $244 per square foot, is above average for large office buildings in Fresno, though not unreasonable given limited comparable sales in the city. 

“Large office sales of this size are pretty limited in Fresno, so there are not a lot of strong comps,” Stumpf said.

She also noted the buildings being built in 1989, high parking ratio and ability to consolidate multiple departments make them a strong fit for the sheriff’s office. 

“The property has a few things working in its favor, including relatively new construction,” said Stumpf. 

The properties are being sold by 7355 N. Palm Avenue, LLC, which holds a 77% interest, and Assemi Investments, LLC, which holds the remaining 23%. 

A message left for Granville CEO Darius Assemi on Thursday morning was not returned.

The county’s purchase agreement sets an expected escrow close date of July 7. 

County documents show that the purchase agreement is different from standard county language in one area, granting mutual indemnity for broker claims. 

Fresno County’s Risk Management department advised against the mutual indemnity clause, but the County Administrative Office determined that it posed an acceptable business risk. 

Funding for the acquisition will come from existing appropriations. The Board adopted budget resolutions increasing Fiscal Year 2025-26 appropriations for the Hall of Records Improvements and County Buildings by $25.05 million. There is no additional net county cost associated with the purchase.

The acquisition is exempt from California Environmental Quality Act (CEQA) review, as it does not constitute a “project” under CEQA guidelines. 

This move also aligns with long-term planning in downtown Fresno, where the state Judicial Council is preparing to replace the nearly 60-year-old Fresno County Courthouse. 

Construction on the new 11-story courthouse, which will include 36 courtrooms, is estimated to begin in 2028. The project may impact sheriff operations in the future once the existing sheriff headquarters and other courthouse-related facilities are replaced. 

The current sheriff headquarters are at 2200 Fresno Street in Downtown Fresno.