By Jon Peterson
New York City-based Clarion Partners has bought its first property in Silicon Valley since July 2008 with the acquisition of the 93,385 square foot Arques Business Park in Sunnyvale. The purchase price was approximately $27 million or $289 per square foot.
The property was sold by Palo Alto-based Menlo Equities. The seller completed the transaction with CBRE. The agents involved in the sale were Joseph Moriarty, Russell Ingrum, Sean Sullivan, Tyler Meyerdirk, Brad Zampa, Joe Kelly and Mike Benevento.
The property has two buildings. 929 East Arques Avenue was built in 1990 and totals 58,688 square feet. The heavy lab build out asset is currently leased to Maxim Integrated Products. The 34,697 square foot 310 DeGuigne Drive was constructed in 1990. It’s comprised of office and some lab space. The tenant in the property now is SK Telecom Americas.
Real estate brokers feel that Clarion bought an attractive property in a good area. “I think they bought a good property in an area of Sunnyvale that is improving. One-half of a mile from the property there is a new Class A gym going in and there are eating establishments in the area, as well. The property also has good access to the freeway, which is important for many tenants,” says Kalil Jenab, executive managing director for Cassidy Turley in its Palo Alto office.
Clarion sees that Sunnyvale is one of the largest technology submarkets in Silicon Valley. The real estate manager stated in an e-mail that this submarket comprises 21.9 million square feet with a vacancy rate of 8.3 percent.
Clarion and Menlo Equities do have some other history together. They formed a joint venture on the last building that Clarion bought in Silicon Valley. This was the purchase of the 105,664 square foot 3300 Olcott Street in Santa Clara. That was approximately a $20 million transaction.
Clarion’s purchase in Sunnyvale was made on behalf of a core commingled fund that the real estate manager oversees. Following this acquisition, Clarion now owns 1.88 million square feet of office/R&D product in the San Francisco Bay Area. “Clarion is enthusiastic about continuing its commitment to make further investments in the Bay Area due to the strong positive momentum of the tech based economy,” says Richard Pink, managing director at Clarion. He works out of the company’s regional office in Los Angeles.