Westcore JV Acquires 613,000 SF in 23 Buildings

SAN FRANCISCO-A joint venture of Longwing Real Estate Ventures and the local office of San Diego-based Westcore Properties LLC has acquired a 23 building, 613,358-sf R&D, light industrial and office portfolio for $78.62 million. The portfolio, which is 90% occupied, consists of eight individual developments in the cities of San Jose, Santa Clara, Sunnyvale and Fremont. The properties are located in or around the Silicon Valley’s “Golden Triangle” formed by the 880, 101 and 237 freeways. The seller was not immediately available. Mark Ziemendorf of Cornish and Carey brokered both sides of the transaction.Westcore’s Northern California acquisitions director Neil Johnson says he was attracted to the portfolio because its small buildings and tenant spaces is the type of product that has seen the most significant activity. While 20% of the overall vacancy in the Silicon Valley submarket is comprised of spaces smaller than 30,000 sf, those spaces accounted for closer to 50% of the submarket’s leasing activity in 2004, he says. “This small tenant activity is typical of a recovering market as new businesses are created and existing users undertake gradual expansion,” says Johnson. “Additionally, the high per square foot cost to develop smaller buildings and tenant spaces will continue to limit new development.” Following is the list of properties in the portfolio:1–2121-2125 Zanker Rd., San Jose: a two-building, 53,900-sf R&D property2–1914-1968 Junction Ave./1911-1943 Hartog Dr., San Jose: a two-building, 119,208-sf light industrial property3–1277 Orleans Drive and 1308 Borregas Ave., Sunnyvale: a one-building, 42,624-sf R&D property4–207 Java Drive, Sunnyvale: a one-building, 34,400-sf R&D property5–48501 – 48531 Warm Springs Blvd., Fremont: a four-building, 146,592-sf R&D property6–3033 Scott Blvd., Santa Clara: a one-building, 32,589-sf R&D property7–2202 – 2262 N. First Street, San Jose: a nine-building, 44,563-sf office property8–890 – 894 Ross Drive/Hwy 237, Sunnyvale: a three-building, 139,482-sf R&D property Westcore Properties opened its San Francisco office last year in response to an improving real estate market in the Northern California region. Shortly thereafter, the company announced its $52.8-million acquisition of Vasona Technology Park, a seven-building office/R&D park in Campbell, CA.Since January 2005, Westcore Properties has acquired approximately $100 million of properties including this latest transaction. The company’s investment plans for this year are aimed at $500 million in industrial, retail and office properties in California and the western United States.