By Meghan Hall
Silicon Valley’s office market is heating up once again, and investors are jumping at the opportunity to buy Class A properties that have long-term tenants. In a deal that was finalized before the Fourth of July, JR Asset Management Company–known as JR AMC–has purchased a Google-leased asset in Mountain View for $282.6 million.
The property, known as Ameswell Mountain View, is located at 750 Moffett Boulevard and was developed by Broadreach Capital Partners. The 222,000 square foot office was completed last year, and a 255-key hotel is expected to open imminently.
The five-story office building is certified LEED Platinum and features amenities such as a roof deck and outdoor courtyard. Broadreach was formally awarded the contract to develop the property in 2016 from the City of Mountainview and assembled 10 acres for the development.
“[The project] will provide both a world class work environment and unparalleled lodging and dining experience to businesses, travelers and local residents alike,” states the property’s website.
Google has not yet moved into the building, and a formal Certificate of Occupancy has not yet been issued for its tenancy. Records with the City show that while the shell of the building has been completed, tenant improvements have yet to take place. The City expects those improvements to take about 18 months to complete.
However, Broadreach only sold the building–not the land–to JR AMC. The land remains in possession of the City of Mountain View. In its initial negotiations with the City, Broadreach arranged for a 55-year ground lease, with four ten-year extensions, according to City of Mountain View public records. While the land is under ownership of the City, Broadreach sold its interest in the land to JR AMC.
JR AMC acquired $283 million from Hana Financial Group to fund the acquisition of the building and leasehold. With the close of escrow, JR AMC will also owe the City two percent of gross sale proceeds as a one-time payment for the sale and transfer of the ground lease, an account that will total about $5.66 million, states a Mountain View City Council Report.
JR AMC, based in Seoul Korea, has more than $6.2 billion of real estate assets under management around the world. Class A office buildings comprise about half of its portfolio, according to data from public records. About 16 percent of its portfolio is dedicated to retail, while residential, hotel and logistics each make up 14, 10 and 11 percent, respectively. Just one percent of its assets are located in the United States.