SANTA CLARA, CA-New York City-based the Praedium Group and South Bay Development Co., a commercial owner and management company in Northern California, have sold 5200 Patrick Henry Dr. here for $20 million. The purchaser was Matteson Realty of Redwood City, CA.
The partnership acquired the vacant property in 2007, and immediately secured a single-tenant, Coherent Inc.. The ownership worked closely with the company to build-out the 90,000-square-foot space to its specifications.
This past August, the tenant committed to a long-term lease extension at the property. “Our ability to acquire the asset and immediately secure a credit-worthy tenant, coupled with the newly-executed, long-term lease extension, provided the maximum sales potential for our investors,” says Robert Murray, managing director at Praedium. “This disposition marks our seventh transaction with South Bay Development and we look forward to expanding our presence in Silicon Valley through future joint ventures.”
As part of its ongoing investment strategy, Praedium continues to actively enhance the value of the properties within its existing portfolio, while also identifying new opportunities for acquisition through The Praedium Fund VII LP, a $900 million real estate private equity fund with purchasing power of $3 billion, according to a prepared statement. “Currently, we have over $500 million available for investment through our Fund VII,” says Murray. “We are enthusiastically pursuing new acquisition prospects in both property and debt secured by real estate assets in the Silicon Valley area, and across the US.”
The JV was represented by Eric Fox and Steve Horton of Cassidy Turley, in the sale of the property.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
