Legacy Sells 350,000-SF Hellyer Oaks Tech Park

SOUTH SAN JOSE, CA-Legacy Partners has sold two buildings totaling 350,000 sf in the Hellyer Oaks Technology Park here for about $35 million, according to sources familiar with the transaction. The buyer was Golden Gate Real Estate, a new partnership of San Diego-based Professors Capital and an undisclosed institutional partner.Located at 5215-5225 Hellyer Ave. in the Edenvale Business District, the two buildings were built in 1980 and are 92% leased but substantially less occupied, local real estate sources tells GlobeSt.com. New Focus, the largest lessee with 130,000 sf at an over-market rent, does not inhabit its space. Its lease runs deep into 2007. The other major lessee is Northrup Grumman, which has three years left on a 115,000-sf lease.”We are bullish on the recovery in the Silicon Valley,” says Bob Emri, a principal at Golden Gate and Professors Capital. “The Bay Area has been, and will continue to be, one of the elite epicenters of the US economy and we…have found a great asset…at a valuation that provides for significant upside. We believe the story here and we are actively looking to acquire more assets in the Bay Area.”Legacy developed several buildings in the park. This latest transaction represents the last of Legacy’s ownership in the park. Sources tell GlobeSt.com that Legacy opted to sell because the loan for the overall park was maturing and, because it had sold the other buildings, it would have been required to add money to the deal in order to refinance and hold onto them.Greg Cioth and Mark Zamudio of Colliers International in San Jose were the brokers involved in the transaction. Mark Zamudio of Colliers San Jose has the leasing assignment. The Muller Co. of Newport Beach has the property management assignment.