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JV Buys 227,600-SF Business Park for $26M

SANTA CLARA, CA-South Bay Development of Campbell and the Praedium Group of New York City acquire the Coronado-Stender Business Park here that is fully leased despite significant vacancy on the horizon.

By Brian K. Miller | Updated on March 30, 2005

SANTA CLARA, CA-South Bay Development Co. of Campbell has acquired a 227,600-sf business park here in a joint venture with the Praedium Group LLC of New York City. The duo paid $26 million, or $113 per sf, for the Coronado-Stender Business Park.Named for the streets it fronts, the 30-year-old park has seven single-story buildings on 15.75 acres. The property is 100% leased but significant vacancy is on the horizon. Tenants include Integrated Device Technology and DuPont.Mark Regoli of South Bay tells GlobeSt.com that Integrated Device Technology, the major tenant, will vacate about 120,000 sf in the park as leases expire over the course of the next three years. The first lease expiration is in six months, he says.The Praedium Group is a 14-year-old real estate investment firm focusing on under-performing and under-valued assets throughout North America, with $4 billion in total investments to date in 1,200 assets comprised of 33 million sf of commercial space and 28,000 multi-family units. CDP Capital-Real Estate Advisory, a Montreal-based real estate advisor and portfolio manager, is a major shareholder of the Praedium Group. South Bay Development acquires, develops and owns commercial property for its own account and in partnership with a variety of institutional investors. The firm focuses its efforts entirely in Northern California and is one of the more active managers and developers of office, industrial, and research and development product, having developed close to 20 million sf over the past 30 years. Regoli says Coronado-Stender Business Park is the second joint venture between Praedium and South Bay. In October, the two acquired 1980 Concourse, a two-story R&D building in San Jose. The two will likely do more deals in the future, though nothing specific is in the works, says Regoli.

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