SAN JOSE, CALIF. – June 29, 2022 – CBRE arranged the sale, purchase and financing of 755 Jarvis Drive in Morgan Hill, Calif., an industrial property sold by Bridge Group Investments, LLC to a joint venture between Ridge Capital Investors & Westbrook Partners for $45 million ($174 per square foot).
Scott Prosser, Joe Moriarty, Jack DePuy, and Rebecca Perlmutter of CBRE’s Northern California Capital Markets along with Brian Matteoni and Chip Sutherland of CBRE’s Silicon Valley office represented both parties in the sale transaction. Brian Matteoni and Chip Sutherland will be retained by the new ownership as the leasing brokers for the Property.
Mike Walker and Brad Zampa of CBRE’s Debt & Structured Finance team in San Francisco represented the buyer in securing a $39.5 million three-year, non-recourse, floating-rate balance sheet loan with two extension options through the San Francisco office of a money center bank.
“We are acutely focused on industrial lending given the strong fundamentals in the sector. Our lenders are gravitating to the space, even for completely vacant projects like 755 Jarvis and competing aggressively to win financing opportunities for well-located Bay Area assets with institutional sponsors,” said Mike Walker, Executive Vice President on the CBRE Debt & Structured Finance team.
Silicon Valley is one of the tightest industrial markets in the nation with a 2.4 percent vacancy rate, according to CBRE. New construction in Silicon Valley has been 95 percent pre-leased, with no ground-up industrial building deliveries planned in the market for 2022.
“Newer, Class A Industrial developments in Morgan Hill, including 755 Jarvis Drive, are attracting occupiers who want to grow their footprint in Silicon Valley as available land becomes increasingly limited. As a result, industrial properties of this size are rarely on the market for long and highly sought after for its proximity to Silicon Valley talent,” said Scott Prosser, Executive Vice President of CBRE.
Located in the Morgan Hill Ranch Business Park, the fifth largest business park in Silicon Valley, the property is situated on 14.7 acres and will be delivered vacant. The Class A industrial facility was built in 1997 as a medical device manufacturing facility for Abbott Laboratories. The 258,122 sq. ft. two-story building features a fully conditioned warehouse with 30 ft. clear heights, four loading dock doors, four grade-level doors, 8,000 amps of power and 458 parking stalls. The new owners plan to reposition the property with new interior upgrades, mechanicals, increased parking and loading capabilities to cater to advanced manufacturing tenants looking for a Bay Area, Class A solution to their manufacturing needs.
Including the acquisition of 755 Jarvis, Ridge Capital Investors has made five Bay Area acquisitions in the last eight months, totaling over $230 million.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
About Ridge Capital Investors, LLC
Ridge Capital Investors, LLC is a San Francisco based real estate firm that has consistently generated superior risk-adjusted returns while offering first-rate service to both our investor partners and our property tenants. The Company seeks opportunities where the team can capitalize on its extensive market and investment knowledge through creative transaction sourcing, broad relationships and operating expertise, all within the context of building an asset portfolio in some of the best markets in the country.