Joint Venture Reveals $111-Mil Acquisition

SAN JOSE, CA-In a deal that went down late last year and only recently announced, a joint venture of Orchard Investors, Pacific Coast Capital Partners, and Blackstone Real Estate Advisors acquired 10 one- and two-story R&D properties here from Divco West Properties. The properties total 530,639 sf and are 93% leased.

The price paid isn’t being revealed, but sources tell GlobeSt.com the price works out to about $210 per sf, or a little more than $111 million. The buildings are split between two separate developments known as project 702 and project 703. The former includes six buildings totaling 248,835 sf accessed off North 1st Street, Daggett Drive and Zanker Road. Project 703 is a four-building, 257,806-sf development accessed off East Trimble Road and Junction Avenue.

Tom Loeswick and Greg Cioth of Colliers International’s Investment Services group represented both sides in the deal. “This was a joint venture deal with two money sources,” says Loeswick, a senior vice president and director in the San Jose office. “For deals in the $100 million plus range, we are seeing more people partnering up to spread the risk a little bit.”