In early January, the company disposed of three R&D properties located at 1680-1690 McCandless Dr., 1740-1768 McCandless Dr. and 1810-1830 McCandless Dr. in Milpitas, CA consisting of approximately 165,000 rentable square feet. A total net gain of approximately $8.35 million will be recognized and classified as discontinued operations on the total sales price of $21.78 million. The buyer issued an unsecured promissory note to the company in the amount of $18.78 million with an interest rate of 0% per annum.

The company recently also revealed that it was going to “explore strategic alternatives for the possible sale” of the company. “As a result of an increase in portfolio sales in various markets around the US, including the Silicon Valley portion of the San Francisco Bay Area, lower borrowing costs, and a steady decline in cap rates from the increased investor demand for yield oriented real estate investments, the company’s board of directors has authorized management to initiate a process to identify potential qualified buyers and determine an appropriate structure for the sale of the company taking into account the potential value of the transaction to stockholders and operating unit holders,” says a prepared release.

As part of this process, the company will conduct a broad-based marketing effort with the assistance of various third party advisors and its founder, chairman and CEO, Carl E. Berg, according to a prepared statement.

“The company is continuing to lease buildings, aggressively pursue new tenants, seek value added acquisitions and run its business in the ordinary course with little or no disruption as a result of the potential sales transaction,” says a company statement. “The company continues to believe that revenues and earnings will continue to increase in 2012 based on new and renewal leases and higher rents.”