By Jon Peterson
Interest in Silicon Valley real estate continues to across the broad spectrum of investors, especially with credit tenants unlikely trade space in the near term. This prompted Los Angeles-based Kennedy Wilson to close on the acquisition of several office/R&D buildings that are located within the Vasona Technology Park in Campbell totaling around 267,000 square feet. The purchase price was $147.2 million, or around $551 per square foot, according to public records.
The seller of the property was a joint venture of PIMCO and Santa Monica-based Vista Investment Group. These firms were represented in the sale by Cushman & Wakefield, and the team that helped execute the sale of the assets included Eric Fox, Seth Siegel and Steve Hermann. Cushman & Wakefield declined to comment when contacted for this story.
One of the properties that were involved in the sale is located at 220 East Hacienda Avenue. Kaiser Permanente occupies this property, and the tenant uses this space for medical offices. Another building in the sale is located at 240 East Hacienda, which has ChargePoint Inc. as a tenant. This company uses the space for its corporate headquarters. A third building in the sale is located at 1359 Dell Avenue, which is occupied by Imperative Care as its corporate headquarters.
Kennedy Wilson will have an opportunity to add some value in the future in the properties. According to industry feedback, there is some additional leasing that could be completed in one of the buildings. The buildings have strong current income with the three major tenants named above, and they have seven years of lease term remaining on their leases.
The sale of parts of the Vasona Technology Park represents the third time in the past six years that the assets have been moved to another owner. PIMCO and Vista had acquired the entire park in late 2017 for $113.3 million, according to public records. The previous owner was the Washington, D.C.-based The Carlyle Group, which paid $84 million for the entire property in January 2015, according to public records.