Invesco Buys New Bay Area Industrial Park for $119M
Newly built Butterfield 5 in Morgan Hill has 5 Class A buildings, 410K SF.
Butterfield 5, a five-building, 410K SF Class A industrial park that was completed earlier this year in Morgan Hill, CA, has been acquired by Invesco Real Estate from Trammell Crow and its joint venture partner, CBRE Investment Management.
According to a report in Silicon Valley.com, based on records filed this month with the Santa Clara County Recorder’s Office, the purchase price for the transaction was $119M.
The 24-acre industrial complex is located near the central business district in Morgan Hill, which is southeast of San Jose in Santa Clara County.
In a joint statement, the companies said a CBRE team will continue to handle marketing and leasing for Butterfield 5. HPA was the architect for the Butterfield complex, with Lusardi Construction acting as the general contractor for the project.
“The property’s access to Silicon Valley and its high concentration of talent in technology, life sciences and manufacturing is highly desired amid a limited supply of flex space,” said Rob Shannon, CBRE executive VP, in a statement.
The five buildings at the tech park, which is located in the Mission Ranch Business Park on Butterfield Boulevard, range in size from 70K Sf to 92K SF.
Trammell Crow is developing another industrial project in Morgan Hill, its Redwood Tech 101 complex on the east side of US 101. The company is planning to build five Class A industrial buildings on the site encompassing a total of more than 500K SF.
In early 2019, Trammel purchased 60 acres of land adjacent to US 101 at Cochrane Road and DePaul Ave. The Redwood Tech 101 development will occupy the southern 30 acres of the property.
In a proposal approved by the Morgan Hills city council, Trammell promised to include “lush landscaping” in the project, including “mature redwoods (that) will create a signature development and greatly enhance aesthetics on US 101 corridor frontage through Morgan Hill.”
The site includes 35- to 40-foot redwood trees that Trammell will be incorporating into the design of the complex. Trammell is marketing the five Class A buildings it is planning for Redwood Tech, which will range in size from 73K Sf to 139K SF, as single-tenant facilities that will be ideal for corporate headquarters.
“With vacancy rates for this type of product at historic lows in Silicon Valley, the Morgan Hill development will provide much needed capacity for growth for regional and Morgan Hill employers,” said Don Little, senior VP for Trammell’s Northern California business unit, in a release on the company’s website.
In its proposal to the city, Trammell said its plans for the northern half of the parcel anticipates a mix of office and commercial uses.