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Divco Fund Pays $29M for 2000 Sierra Point Parkway

BRISBANE, CA-Page Mill Properties LP acquires the 219,000-sf, 50%-leased office tower here from Shin Yen Corp., which reportedly acquired the property at the end of 2003 for about $23 million.

By Brian K. Miller | Updated on January 17, 2005

BRISBANE, CA-Page Mill Properties LP, an investment fund of Divco West Properties has acquired the 2000 Sierra Point Parkway office building here for just under $30 million. The 219,000-sf, 12-story class A office tower is about 52% leased. The anchor tenant is Hitachi America Ltd., which used to own the building and still houses several of its divisions in about 60,000 sf there. The building has nine other tenants.The property was built in 1988. Younan Properties acquired the building from Hitachi in late 2003 for about $22.8 million and flipped it three months later to Shin Yen, the local operation of an overseas high-net-worth family, for a similar price. The building was about 50% leased at the time of the transactions.Mike Moran of BT Commercial represented Shin Yen in the transaction and will retain the listing to lease the property. Both Moran and a Divco representative declined comment on its purchase price, which was provided to GlobeSt.com by a third party source.Moran did say the increased value of the property is in large part attributable to the that fact that the Peninsula market has really turned around in the 18 months since Shin Yen acquired the building. “Vacancy has been cut in half and the building is one of only a handful of taller buildings on the Peninsula,” Moran tells GlobeSt.com. Divco’s Page Mill Fund was closed in September 2003 with $290 million of equity, Since that time, it has accumulated more than 2.3 million sf of office and R&D properties and 363 hotel rooms in transactions totaling more than $471 million.

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