Miramar Capital and Colony Northstar Acquire Two Silicon Valley Assets for $49.5MM

(EDITOR’S NOTE: Miramar Capital with partner Colony Northstar acquired the 42,000 square-foot 400 Logue Avenue in Mountain View for $31 million, or $738 per square foot. This office building is fully leased to Quotient. This was an off-market transaction, and the seller was a private investor. There were no brokers invovled for either the buyer or the seller. The lease with Quotient has another four years left, and the current rent is below market levels. The future plans for the property are to re-lease the building at market rents or to re-develop the property for a higher or better use. A potential future use could be a high-density residential development.

The partnership also purchase another asset located 1250 Reliance Way in Fremont. This is a building that is around 100,000 square feet and is leased to Western Digital. This R&D property was bought for $18.5 million, or roughly $185 per square foot. The lease with the existing tenant has five years left to run and is also below market.)

Santa Monica, CA – Commercial real estate veterans Paul Fuhrman, Jae Yi and Perry Hariri have joined forces to form Miramar Capital, a Santa Monica, CA-based real estate operating and investment platform. Miramar will team with private and institutional capital sources to pursue value-add commercial real estate investments targeting infill properties which possess the opportunity for significant value creation through a strategic re-entitlement and redevelopment process. Miramar is focused largely on strong primary and secondary markets in California and other select West Coast markets.

While the trio only launched the new platform this summer, they have wasted no time with two transactions already closed and two currently in escrow. Their most recent acquisition was through a joint venture with Grand China Overseas Investment Management LTD (Grand China). Miramar and Grand China partnered to acquire a fully leased office building in Mountain View, CA in an off-market transaction, where there is strong demand from technology companies as commercial tenants, as well as the opportunistic value creation prospect of re-entitlement for high-density residential use.

“We are excited about our new partnership with Paul and the Miramar team,” said David Long, CEO of Grand China. “They have the right skills to identify unique investment opportunities in a market where finding interesting opportunistic returns is increasingly difficult.”

Miramar has also reached agreement with Colony Northstar, Inc. (Colony Northstar) to pursue certain California-based development and re-entitlement opportunities, according to Fuhrman.

“We enjoy a really good relationship with our former colleagues at Colony Northstar and continue to actively evaluate investment opportunities with them,” said Fuhrman. “With that said, we are at a point in the cycle where we have to be very targeted and thoughtful in our approach. We believe our covered land strategy takes advantage of our combined entitlement, development and capital markets expertise to identify opportunities where we can unlock significant value with downside protection.”

“Paul, Jae and Perry are all very talented professionals whom we know well and have direct experience with,” said Richard Saltzman, President & Chief Executive Officer of Colony NorthStar, Inc. “In fact, the team sourced two transactions in Silicon Valley involving entitlement and redevelopment that we invested in previously and which are currently exceeding expectations. As a result, we are highly confident of Miramar’s ability to identify other similar joint venture equity opportunities.”

The three founding partners bring together nearly six decades of experience in the successful execution of more than $5 billion of real estate investments. Fuhrman was previously Executive Director and Head of U.S. Acquisitions for opportunistic debt and equity investments at Colony Northstar where he led many of the REIT’s debt fund investments from 2009 through 2016. Yi was a Managing Director at Colony Northstar responsible for the sourcing and execution of many investments across various property types. Hariri, a long-standing development partner of Colony Northstar, brings more than 20 years of commercial real estate entitlement and development experience. Most recently, Hariri was principal and founder of Fortbay LLC, a Silicon Valley-based infill development firm.

Miramar Capital has its main office at 100 Wilshire Blvd, Suite 650, Santa Monica, CA with a regional office in Silicon Valley at 4300 Stevens Creek Blvd., San Jose, CA.

About Miramar Capital
Miramar Capital (http://www.miramarcapital.com) is a privately held real estate investment platform committed to providing best-in-class investment services with an acute focus on execution, integrity and transparency. Miramar was founded in 2017 by Paul Fuhrman, Jae Yi and Perry Harri, real estate veterans of Colony Northstar and Fortbay, who collectively have nearly six decades of experience in the execution of more than $5 billion of real estate investments.

West Coast Commercial Real Estate News