SAN JOSE–The 200,000-square-foot Broadcom Building located at 3151 Zanker Rd. was acquired by an affiliate of Oakmont Corporation. The building is 100 percent occupied by Broadcom Corporation, a semiconductor provider for wired and wireless communications. MetroGroup Realty Finance arranged $35.7 million in financing at a 65% loan to value on behalf of its client for the acquisition of the building.
Pat Ward, founder of MetroGroup Realty Finance, tells GlobeSt.com:
“The building is located within a region of the Silicon Valley where demand for facilities by tech firms continues to grow. Based on the strong demand within the region and the existing high-level tenant, we were able to demonstrate to lenders the value of this asset and secure competitive terms on behalf of our client.”
The asset, which encompasses research and development, data center and corporate offices, is located just outside of Silicon Valley's tech epicenter. It is off of Montague Expressway across the street from Lockheed Martin's information services and global systems facility, and less than a mile from the Cisco Systems campus.
“We immediately recognized the value of this asset, based on strong market fundamentals in this region and we anticipate that this investment will be a sound, stable investment for our client over time,” continues Ward.
In demonstrating asset value, the financing was structured in such a way that met all investment objectives in this transaction. In the end, the transaction was attractive to lenders and included the best terms for clients.
Founded in 1983, MetroGroup Realty Finance is a private, Newport Beach-based mortgage banking company that specializes in providing capital advisory and mortgage banking services. It has experience across a variety of property types including office, retail, industrial, multi-family, mixed-use, hotel/lodging and land.
Additional information from Oakmont Corporation was not available at deadline but if more information becomes available, a follow-up report will be provided.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
