SAN FRANCISCO-As GlobeSt.com just previously reported, a 16 office and R&D building portfolio totaling 508,946 square feet has changed hands. Menlo Park, CA-based Lane Partners purchased the portfolio which was 94% leased to a diverse tenant roster including Apple, which leases 33% of the portfolio's net rentable area.
Industry sources previously told GlobeSt.com that the price around $120 million. Our sources say the seller was RREEF Funds.
According to CBRE, there was very strong interest from the investment community for the opportunity to acquire “a critical mass of office and R&D product located in one of the country's top performing markets.”
The CBRE marketing team was comprised of Joseph Moriarty, EVP; Russell Ingrum, vice chairman/managing director; Sean Sullivan, EVP; Tyler Meyerdirk, vice president; and Brad Zampa, EVP.
Moriarty says that “The portfolio will continue to provide a strong in-place cash flow and a tremendous upside opportunity as market rents continue to increase across all of Silicon Valley—and particularly in submarkets like Sunnyvale.”
Sunnyvale will continue to experience the strong fundamentals demonstrated over the past eight quarters “as the demand from large household name companies grow in the Silicon Valley,” adds Moriarty.
Thirteen of the buildings are located within Peery Park, one of the premier submarkets in the Silicon Valley, due to its centralized location with immediate access to Highways 101, 237 and 85. The other three buildings are located in South Sunnyvale within two miles of Peery Park. Buildings range in size from 10,000 to 59,000 square feet. The portfolio is leased to a diverse mix of tenants from a wide range of technology sectors including medical device, bioscience, wireless networking, computing software and personal electronics.
Since the third quarter of 2011, the submarket has witnessed a 462 basis point decrease in the vacancy rate while asking rates have risen over 28% during the same time frame with much room for growth. CBRE-Economic Advisors projects that Sunnyvale will experience 31.7% cumulative rent growth from 2013-2018, equal to 5.65% compound annual growth rate.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
