CBRE Global Investors advises WealthCap in acquisition of Silicon Valley office campus leased to Netflix as part of separate account mandate
LOS ANGELES – September 29, 2015 – WealthCap has acquired two newly constructed Class A buildings in a trophy office campus in Silicon Valley. This investment is part of a separate account mandate in which CBRE Global Investors, one of the world’s largest real estate investment managers, is advising the German-based real assets investment leader on U.S. commercial real estate investments. The acquisition represents WealthCap’s second investment in Silicon Valley within the last 12 months.
Prominently located at 121 and 131 Albright Way at the intersection of Route 85 and Winchester Blvd. in Los Gatos, California, the two low-rise steel-framed office buildings comprise a total of 260,979 square feet and are both 100 percent net leased to Netflix, Inc. to serve as their future global headquarters. It also includes an interest in the surrounding 15-acre campus, including 664 surface parking spaces and shared use of a 930-space structured parking garage.
The buildings are ideal for Silicon Valley tenant requirements featuring a state-of-the-art design which includes high-quality modern finishes, large efficient floor plates, central core design for elevators and bathrooms, 11-foot finished ceilings, two-story atrium lobbies, floor-to-ceiling window lines, a reception area with indoor/outdoor space for hosting events and a viewing auditorium for Netflix premieres, kitchenettes and perimeter conference rooms on each floor and solar panels on the roof for energy efficiency. The buildings, which have been designed to achieve LEED Silver certification, were constructed with three-inch raised flooring and carpet tiles to hide electrical cables and wire while maintaining the ability to change the layout. In addition, electric car charging stations have been installed near the building, and more than 7,000 square feet of outdoor patios provide panoramic mountain views.
“As a high-quality core office building in a highly desirable and high-barriers-to-entry submarket, the property is a strategic fit that is consistent with WealthCap’s targeted net return, product type, and geographical acquisition criteria,” said Peter DiCorpo, President of CBRE Global Investors’ Managed Accounts Group.
Mahmoud Hawari, President of WealthCap Investments Inc., said, “This is a rare, newly constructed building in a supply-constrained market that fits very nicely with our strategy to invest in Innovation Districts in the U.S. This is a market where people and businesses want to be to enjoy a wide variety of benefits, which you can see by the dynamic growth in this market over the last few years.”
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $88.4 billion in assets under management* as of June 30, 2015. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment firm for the benefit of its investors. CBRE Group, Inc. has more than 52,000 employees in more than 370 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
WealthCap is one of Germany’s market leaders in investments in real assets. With more than 30 years of investment expertise, WealthCap has access to high-quality investment opportunities in many attractive asset classes that it translates into clear investment products tailored to individual investment objectives. WealthCap develops products for both private investors and structured solutions for the particular requirements of professional investors. Approximately 216,000 investors have now made investments in 138 shareholdings. Around EUR 7.3 bn of equity has been invested in total.