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424,805-SF Juniper Networks HQ Trades at $174M

SUNNYVALE, CA-Known as the Mathilda Business Center, Tishman Speyer of New York is acquiring the local property from the California State Teachers Retirement System, which is said to be making a huge profit on the transaction despite acquiring the property less than one year ago.

By Brian K. Miller | Updated on April 06, 2005

SUNNYVALE, CA-For a purchase price of $174 million, Tishman Speyer is the new owner of Mathilda Business Center, a three-building, 424,805-sf complex here that is fully leased and occupied by Juniper Networks. ING Clarion sold the asset on behalf of the California State Teachers Retirement System.Industry sources familiar with the transaction tell GlobeSt.com that Clarion hit a homerun for CalSTRS, turning a profit of between $40 million and $50 million in less than one year. Michael Leggett, Gerry Rohm and Phil Mahoney of Cornish & Carey had the disposition assignment. None of the brokers was immediately available for comment Wednesday afternoon.Juniper, a designer and marketer of Internet Protocol routers, leases the entire facility with three different leases that expire in eight- to 10 years. The growth in value of the asset is due in part to the fact that Juniper’s finances have improved significantly. In addition, the public company is now occupying all of the entire park, whereas before it was leasing the entire park but only occupying a portion of it. Finally, sources tell GlobeSt.com that the value was further boosted by general cap rate and IRR compression in the capital market for well leased, well located real estate.”We bought this asset with the goal of participating in the market recovery we anticipated in Silicon Valley,” states Latimer, ING managing director, in a prepared statement. “When it became apparent that this type of asset was being aggressively priced in the current capital markets, we decided to capture the increase in value achieved.”

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