By Jon Peterson
San Francisco-based Embarcadero Capital Partners has placed on the market for sale the 368,524 square foot office/R&D asset in Milpitas known as Murphy Crossing. The pricing guidance on this sale is at $130 million, or around $353 per square foot, according to sources that track the sale of properties in that part of the San Francisco Bay Area.
The seller has hired the San Francisco office of Newmark Knight Frank as the listing agent on the sale. Those involved in the sale include Steven Golubchik, vice chairman, Edmund Najera, executive managing director, and Tyler Meyerdirk, senior managing director. Newmark Knight Frank declined to comment when contacted for this story.
Embarcadero Capital and New York-based True North Management Group have been the owners of Murphy Crossing since January 2017. These real estate investment firms had paid $88 million, or roughly $239 per square foot, for the property at that time, according to public records.
Murphy Crossing has a total of five buildings within the property. They are located at 1001,1011 and 1033 McCarthy Boulevard and 915 and 933 Murphy Ranch Road in Milpitas. The asset was first constructed in 1994 and went through a renovation between 2014 and 2015. All of the buildings in the complex are two stories and range in size from 62,000 square feet to roughly 90,000 square feet.
The property has no current vacancies. There are three tenants that occupy all of the space in the property. The company with the most space is Renesas, which has a lease that totals 218,226 square feet, or 59.2 percent of the property. Sonicwall has a 76,988 square feet lease for 20.9 percent of the asset, while Bayer is the smallest tenant occupying the balance of the property in a lease for 73,310 square feet.
These tenants have leases that will keep them in the property for some time. The average time on the remaining leases is at 6.3 years. The in-place rents for the buildings are currently 17 percent below market, according to industry estimates.
Murphy Crossing is a complex that has a total site area of 20.47 acres. It has a parking ratio of three spaces per 1,000 square feet with a total of 1,109 stalls. The amenities in the asset include an on-site cafeteria, outdoor volleyball and basketball courts, bike storage and EV charging stations. The complex is also located about a half mile from the Milpitas BART station.