By Meghan Hall
Hines has expanded its Bay Area holdings, this time investing in Fremont. In a deal that closed at the end of April, Hines purchased the Dixon Landing Research Park for $47 million, or about $225 per square foot. The seller of the property was Walnut Creek, Calif.-based Vertical Ventures, who has owned the asset since 2019.
The Mercury News was the first to report on the deal. Lee & Associates’ marketed the property for sale on behalf of Vertical Ventures.
Vertical Ventures acquired the property just over two years ago for $37 million, according to public records. Located at 49000 – 49090 Milmont Dr., the property is developed with three buildings constructed between 1984 and 1987. According to Vertical Ventures’ website, the buildings total 209,300 square feet.
Current tenants at the property include MicroTech Systems, Kyocera, and Fabri-Tech Components. Vertical Ventures states that upon its original acquisition of the property, in-place contract rents were 40 percent below market, and the company had access to 75 percent of the rent roll over the first several years of ownership. The firm had also planned to hold the property for about four years, and pursue renovations of the exterior, entryways, hardscape and landscaping, as well as future structural upgrades.
The property is close to Milpitas, Interstate 880 and Mission Peak National Preserve. A number of other major companies are located nearby, such as Cisco, ASA Computers Inc., and DSL Logistics.
In recent months, Hines has also invested in other research properties throughout the Bay Area. The company closed on its acquisition of a single tenant building at 5301 Patrick Henry Dr. in Santa Clara in February. The firm paid about $68 million, or $526 per square foot, for the property. The building totals 129,200 square feet.
At the time, Hines stated Silicon Valley’s market was a prime place to expand. Worldwide, the firm currently has $144.1 billion worth of assets under management, and the firm has 165 developments underway around the world. Since its founding in 1957, the company has redeveloped or acquired 1,426 properties totaling more than 472 square feet. Looking ahead, according to a recent statement from the company, Hines will continue to make investments across the risk spectrum and all property types.