Invesco & LPC Buy Buildings in Fremont’s Ardenwood District for $85MM

By Meghan Hall

Two of the nation’s biggest developers have teamed up to acquire property in Fremont. In a deal that was recently finalized, Invesco and Lincoln Property Company purchased two buildings within Fremont’s increasingly popular Ardenwood District for $85 million, according to multiple sources with knowledge of the deal. The sale was recorded on November 23rd. The seller of the buildings is affiliated with CPF Paseo Associates LLC and Orange County-based Crown Realty and Development.

The two properties are located at 6900 Paseo Padre Parkway and 6801 Kaiser Drive. 6900 Paseo Padre totals 97,747 square feet of space according to CommercialCafe, and sits on 8.79 acres of land. The single-tenant, Class B building was originally constructed in 2001.

Colliers Institutional Capital Markets Team, led by executive vice presidents Andy Zighelboim, Kevin Moul, Bob Gilley and Brad Idleman, arranged the transaction. The seller were affiliates of Crown Realty & Development out of Costa Mesa, California. 

6801 Kaiser has about 88,043 square feet of space and sits on 8.789 acres. Like 6900 Paseo Padre, the building was first constructed in 2001. Currently, the asset is home to TE Connectivity, which designs precision sensors for aerospace, military and consumer vehicle uses.

“Given the robust economic growth within the science and technology sectors coupled with strong locations in two of the leading domestic markets, this acquisition made perfect sense for Lincoln Property Company and Invesco Real Estate to further their strategy in leveraging these economic drivers. The assets offer stable midterm cash flow with the flexibility to possibly create additional value in the future,” said Zighelboim.

The seller, Crown Realty and Development, is owned by Robert A. Flaxman. In 2019, Flaxman was sentenced to a month in prison, plus 250 hours of community service, for his participation in Operation Varsity Blues. The college admissions scandal saw at least 53 people–including Felicity Huffman and Lori Loughlin–of using bribery and other means to sway college admissions. 

As for Invesco and Lincoln Property Company, it is unclear what their current plans are for the asset. However, Fremont’s Ardenwood District has made headlines in recent months. In July, TPG Real Estate spent $140 million to acquire the Campus @ Ardenwood, which is leased to SportsMedia Technology, Logitech and others. Also this year, BentallGreenOak purchased the Ardenwood Research Center for $53 million.

The area has become popular with investors as major tech firms moved into the market. Facebook has rented nearly 1.3 million square feet in the district in recent years, expanding its reach into the East Bay. Other companies, such as Neuralink, founded by Elon Musk, and Novo Nordisk and HID Global are also located in the neighborhood, creating an attractive hub for investors.

CORRECTION: A previous version of this article identified Trammell Crow as LPC’s investment partner.

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