This is the second property Bixby has sold into the JV. In December, it recapped Airport Technology Park, a five-building 300,000-sf office/R&D park here that is 86% leased to two publicly traded companies, Macrovision Corp. and BAE Systems. Bixby acquired the asset in September for $85.4 million and recapitalized it into the JV at the same price.Bixby has acquired $263 million of Silicon Valley properties over the past 15 months. In addition to the two aforementioned assets, it paid $72 million for the 223,866-sf mixed-use University Station development in Santa Clara in Santa Clara last January. Located across from Santa Clara University and adjacent to a Caltrain station, the development is 90% leased. In October 2006, the company paid $70 million for Legacy Tech Center, a fully leased five-building, 302,000-sf R&D complex in San Jose leased to Tivo Inc. and Foundry Networks.

In addition to recapitalizing properties Bixby previously acquired, Peter Petron, a principal with Investcorp's real estate group, tells GlobeSt.com that the duo will look to acquire additional office and R&D properties in the Silicon Valley but has no set amount of equity it plans to invest in the area.

"Bixby is a great relationship that we expect will expand in 2008 and beyond," he says. "As a flexible, situation-oriented investor, Investcorp does not focus on forward allocations to specific markets, asset types, or partners -- that said, no specific allocation has been established for this relationship."