Mission Falls Business Park is an office and R&D development sits on 7.7 acres in and around the 47000 block of Warm Springs Road. Westcore director of acquisitions Neil Johnson tells GlobeSt.com that two of the three buildings are vacant. Those buildings will be renovated and demized into very small spaces, ranging from 1,500 sf to 4,000 sf, which is what drives that market, he says.
"We have two other properties on Warm Springs Road within a half mile of this property that we picked up in spring 2005," he says. "Both had vacancy and a bunch of rolling space. One is now full and the other is 85% leased, so we understand what's leasing there."
The plan for Mission Falls is to build out most of the small spaces on a speculative basis with a conference room and two privates, Johnson says. The speculative build out will provide prospective tenants the opportunity to be up and running in their spaces much more quickly, a tactic that has proven successful in Westcore's other nearby parks.
The asking full-service lease rate for office space in the renovated buildings will be $2.25- to $2.50 per sf per month. Johnson adds that Westcore is pursuing placing a condominium map on the property and will take reservations from tenants with a desire to acquire their own unit.
The Mission Falls buildings addresses are 121-181 Mission Falls Lane, 47061-47073 Warm Springs Blvd. and 47092-47132 Mission Falls Ct. in Fremont, 94539. The properties have good access the 8870 and 680 freeways. The seller was Mission Falls LLC, for which no information was immediately available.
The one building at Mission Falls that is not vacant is fully occupied by three tenants, including a bank. The vacant buildings were previously leased in part by Bank of America and Honeywell. "They were spread out in the buildings and when they moved out the owner didn't have the capital or the desire to reinvest in the space," Johnson says.
Colin Feitchtmeir, Tyler Kemp, Kent Hillhouse and Steve Horton of Commercial Property Services represented both parties in this transaction. Westcore Properties' financial partner in the purchase is Buchanan Street Partners. Countrywide Financial is the lender.
Westcore acquired its two other Warm Springs Road properties in April 2005 as part of a larger Silicon Valley portfolio that included R&D, light industrial and office properties. In a joint venture of Longwing Real Estate Ventures, it paid $78.62 million for 613,358 sf in 23 buildings in eight individual developments in the cities of San Jose, Santa Clara, Sunnyvale and Fremont.
The transaction was one of several Silicon Valley portfolios to change hands in 2005. In September of that year, a joint venture of TMG Partners of San Francisco and MacLean, VA-based JER Partners paid Renco Properties of Sunnyvale around $128 million for a 16-building 1.02-million-sf R&D/office portfolio within the Bayside Technology Park in Fremont.
Also that month, FirstCal, the $950-million joint venture of publicly held First Industrial Realty Trust of Chicago and the California State Teachers Retirement System, acquired 737,000 sf of R&D space in 11 buildings in four developments in the Santa Clara County cities of San Jose, Sunnyvale and Milpitas. The purchase price for the 75% leased portfolio was $85.5 million or $116 per sf, according to local industry sources.
In August, Burlingame-based Four Corners Properties LLC acquired a 301,593-sf office/R&D portfolio in Santa Clara and Sunnyvale from Equity Office Properties. The buildings are approximately 50% leased. The acquisition price was not available. In July, EOP sold a 301,593-sf 14-building office/R&D portfolio in Santa Clara and Sunnyvale to Westcore Properties. The buildings were 85% leased. The sale price was $144 per sf.
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