By Jon Peterson
Newport Beach, Calif.-based CIP Real Estate wants to have a bigger presence in the San Francisco Bay area in 2018 through the acquisition of office and industrial properties. It first came into the market last year with the $27.1 million acquisition of the 195,000 square foot Eden Landing Business Park in Hayward.
“We view the Bay Area as a target market for our investment strategy in 2018. We like that the region is a very tight market for both industrial and office assets. It’s extremely hard to re-develop multi-tenant industrial assets as most of the new industrial assets being added to the market are large bulk distribution single tenant properties. Most of the industrial assets that we prefer to invest in are of the multi-tenant variety,” says Eric Smyth, a principal of CIP Real Estate.
CIP is planning to acquire properties in 2018 with a total capitalization of $150 million. Its other targeted markets besides the Bay Area include Southern California, Las Vegas, Phoenix the Carolinas, Nashville, Atlanta and Dallas. The company is expecting to acquire from five to eight properties over the next 12 months.
CIP will be buying the assets along with its institutional capital sources. One example of this is the property it acquired in Hayward. This property was purchased in a venture with Baltimore, Md.-based Alex. Brown Realty.
CIP has a different strategy for both industrial and office assets. “We are looking to find multi-tenant industrial assets that would be considered core to core plus opportunities. Our deals with office buildings would me more like properties that have a value-add component,” said Smyth.
CIP is also looking to be an active seller of some of its assets outside of the Bay Area. “In all we hope to dispose of an additional $100 million in commercial assets, whose value we have maximized. This capital will help fuel the acquisitions we make this year and in the future,” said Smyth.