Deutsche Buys 50% Interest in Menlo Park Office Asset

Deutsche Asset Management Menlo Park Embarcadero Capital Partners Belmont Silicon Valley Palo Alto Caltrain JLL

By Jon Peterson

New York City-based Deutsche Asset Management’s Alternatives and Real Assets (ARA) has acquired a 50 percent interest for roughly $1,000 per square foot to buy into the 85,732 square foot office building in Menlo Park located at 80 and 85 Willow Road, according to sources familiar with the transaction. At that valuation and equity, Deutsche’s investment would come to roughly $42.8 million.

Deutsche declined to comment when contacted for this story.

The operating partner on this property is an affiliate of Belmont-based Embarcadero Capital Partners. This real estate investment company had acquired the property for $78 million in December of 2014.

Deutsche’s interest in Silicon Valley is underscored by this partnership. “The demand fundamentals across Silicon Valley continue to remain very strong. Willow Park is a unique asset strategically located in the dynamic Menlo Park market. We strongly believe that Willow Park will benefit from a cosmetic and mechanical upgrade focusing on preserving the unique character and the amenities that make this property so attractive,” says Todd Henderson, head of real estate in the Americas for Deutsche ARA.

The property on Willow Road is a low-rise asset covering two buildings. This project is attractive to technology and other innovative firms through its open, park-like setting with creative space. The asset was constructed on 9.85 acres of land.

The project is located near public transportation through the Menlo park and Palo Alto Caltrain stations. It is a five-minute drive from both of these stations. It is also close to Highway 101.

The leasing of space at the property is handled by Mark Bodie and Gregg Walker of JLL.

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