Dublin Property Acquired for $36.2MM As Part of $187.5MM Joint Venture

By Jon Peterson

The 201,620 square foot office building located at 5160 Hacienda Drive in Dublin was acquired recently for $36.2 million as part of an $187.5 million joint venture between New York City-based Gramercy Property Trust and Fort Worth, Texas-based TPG Real Estate, according to the third quarter 2106 earnings report from Gramercy.

Gramercy did not respond to several phone calls seeking comment for this story. TPG declined to comment for this article.

The property in Dublin is 100 percent leased to Carl Zeiss Medtec. The tenant’s lease in the property runs for another three years. The company uses this location as its US office of the medical technology business group of Zeiss.

Gramercy is calling the joint venture the Strategic Office Partners. It contributed all of the assets for the venture and remains a 25 percent owner in the assets in the venture. Gramercy made an initial $16 million equity investment in the venture, and there are net proceeds of $140.6 million.

All of the assets in the venture total 980,825 square feet. Four of the six properties are located in California. The other properties are located in Westlake Village, Sorrento Mesa and Burbank. The properties located outside of the Golden State are in Nashville and Minnetonka, Minn. The other tenants in the venture are Bank of America, Verizon Wireless, Syngenta Seeds, Time Warner Cable and Deluxe Entertainment Services Group.

None of the leases come up for renewal until 2018. TPG Real does have a regional office located in San Francisco, according to its Web site, located at 345 California Street. The company invests in a variety of property types and strategies throughout the country.

Strategic Office Partners will be a major player in the acquisition of more assets in the future. The venture will seek to acquire up to $1 billion of office assets over the next three years. The capital for these will come from a total of $400 million of equity supplied by TPG and Gramercy and a $200 million non-recourse credit facility from Morgan Stanley.

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