MORGAN HILL, CA—Limited space for lease and no new construction in Silicon Valley as of last quarter has pushed tenants and buyers beyond the metro further south into the county, in search of space and acquisitions. One recent buy of two properties resulted in the new owner becoming one of the largest landlords in Morgan Hill.
Nazareth Enterprises Inc., a privately held investment firm based in San Mateo, CA, completed the acquisition of two properties for $15.6 million in the Madrone Business Park, located at 18705 and 18715 Madrone Pkwy. The properties consist of 60,000 and 120,000-square-foot flex buildings situated on 9.99 acres. Together, with the property at 18735 Madrone Pkwy., Nazareth now leases 332,500 square feet on the 20-acre parcel. Nazareth Enterprises Inc. has real estate assets and healthcare holdings throughout Northern California.
“Nazareth Enterprises Inc. is generally proud of the broader footprint that this acquisition has given us,” Mounir Kardosh, president and CEO of Nazareth Enterprises Inc. tells GlobeSt.com. “We are currently exploring opportunities in our back yard and the Greater Bay Area. As for the Morgan Hill properties, we are currently seeking tenants for the second floor space, where we have as little as 5,000 and as much as 46,000 square feet available.”
Nazareth Enterprises Inc. was represented by Abe Matar with Landmark Real Estate Services. The seller, a private equity firm, was represented by the Stan Johnson Company.
“With their acquisition of the Paramit Building (18735 Madrone Parkway) late last year, Nazareth is now one of the single-largest landlords in Morgan Hill,” said Matar. “As an experienced local private company who understands the market, Nazareth is poised to deliver stability and growth opportunity to its tenants.”
The Silicon Valley industrial market recorded 129,863 square feet of positive net absorption in the second quarter, marking the 17th consecutive quarter of occupancy growth, according to CBRE's latest industrial report. Available inventory remains limited as no new product was delivered last quarter, GlobeSt.com learns.
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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.
