DRA Buys Silicon Valley Portfolio from Blackstone for $222M
Ten buildings were part of Blackstone's 2022 acquisition of PS Business Parks.
A group of investors headed by New York-based DRA Advisors has purchased a portfolio of buildings in Silicon Valley in a deal totaling $222M with affiliates of Blackstone.
The portfolio, a mix of office, commercial and industrial properties, includes two buildings in San Jose, four buildings in Santa Clara and four buildings in Milpitas, according to a report in the San Jose Mercury News.
In Milpitas, the DRA-led group paid $75M to buy four buildings encompassing a total of 302K SF at 901, 1001, 1123 and 1151 Cadillac Court.
The two acquisitions in San Jose included the purchase for $57M of a 214K SF building at 591 North King Road and a $17M purchase of 1721 Rogers Avenue, a 22K SF property.
The four buildings in Santa Clara, each located on Leonard Court and encompassing a total of 178K SF, were acquired for $73M.
Blackstone bought the South Bay buildings as part of its $7.6B purchase of PS Business Parks in 2022. In the 2022 transaction, Blackstone acquired a 27M SF portfolio of industrial, business park, office and multifamily properties located primarily in California, Miami, Texas and Northern Virginia.
In a separate East Bay transaction, the DRA-led investors acquired the three-building Fremont Commerce Center, located on Christy Street in Fremont, for $81M. The group also acquired an 82K SF building at 7,300 Edgewater Drive in Oakland for $52M, according to a report in SiliconValley.com.
According to its website, DRA’s funds own 597 properties in 49 states, including office, industrial, retail and apartment properties.
“We make sure to stay adaptive to changing market conditions,” DRA says in its marketing materials. “We target investments that offer competitive income returns and the potential for capital appreciation. Preservation of capital, downside protection and stability of cash flows are key elements of the firm’s investment approach.”