(EDITOR’S NOTE: According to public documents, the deal of transaction was for $141.5 million.)
Existing co-owner Ellis Partners to retain ownership stake; New ownership team set to make major upgrades to the three office buildings adjacent to The Pruneyard Shopping Center
Campbell, CA –Ellis Partners announced today that a transaction has been completed for Oaktree to purchase a majority stake in the 3-building, 365,000 s.f. Class A office component of the iconic mixed-use Pruneyard complex in Campbell, CA. Financial terms of the transaction were not disclosed. Ellis Partners, which purchased the property in 2014 will retain an ownership stake and continue to manage the project.
The Pruneyard Office Towers are centrally located in the heart of Silicon Valley’s West Valley submarket with prominent visibility and ease-of-access along Highway 17 and less than a 10-minute walk from downtown Campbell (via a newly improved walkway) as well as the Hamilton VTA light rail station. As part of this West Valley landmark property, the towers are immediately adjacent to the recently transformed 260,000 s.f. Pruneyard Shopping Center and a 169-room Doubletree by Hilton hotel. The Oaktree transaction provides the new ownership group with fresh capital to embark on significant additional amenity and common area upgrades to the office buildings. Ellis Partners will continue to own the retail component with its existing financial partner.
“This is a one-of-a-kind, amenity-laden property in Silicon Valley’s West Valley. These office towers lie within the exact type of amenity and entertainment options that today’s office tenants are increasingly demanding. Our tenants have the best of all worlds,” said Jim Ellis, Managing Principal of Ellis Partners. “We are thrilled to have Oaktree as our new partner which allows us to invest even more deeply into these towers in keeping with all of the major changes we have implemented on the attractive retail, food and entertainment offerings right outside the front door.”
The three towers on the properties are:
– Tower 1: 1901 S. Bascom, 119,310 s.f. and 18 stories tall
– Tower 2: 1999 S. Bascom, 119,002 s.f. and 10 stories tall
– Pruneyard Place: 1919 S. Bascom, 126,736 s.f. and 6 stories tall
– The site for 777 Campbell Avenue, a fully-entitled 100,000 s.f., 5-story building within the Pruneyard is also included in the transaction.
The towers’ multi-tenant and varied floorplans allow Fortune 100 companies as well as professional service and younger technology companies to benefit from their tenancy at the amenity-rich West Valley development.
The Pruneyard Office Towers sit adjacent to the Pruneyard retail center, which features 17 restaurants and 23 retailers. A few of the offerings include Trader Joe’s, Rock Bottom Restaurant & Brewery, Mendocino Farms, Orchard City Kitchen, and The Pruneyard Cinemas, a luxury format cinema. Even more high caliber food and retail options are set to debut soon.
Melinda Ellis Evers, Managing Principal added, “We are thankful for our nearly five-year collaboration with the community and our prior investors. Each contributed greatly to what makes this property so special. We have looked for opportunities to partner with Oaktree for many years and are pleased that our first venture together will be at the iconic Pruneyard Office Towers.”
The South Bay Eastdil Secured Investment team, with support from the on-site Cushman & Wakefield listing team of Todd Beatty, Bob Simpson and Rob Souza assisted with the transaction.
About Ellis Partners LLC
Ellis Partners is one of Northern California’s largest commercial real estate investors and developers focused on office, retail, industrial and mixed-use product types. The firm’s multi-faceted capabilities include land entitlement and development, property repositioning, adaptive-re-use and historic renovation. Ellis Partners also provides leasing expertise, asset management, development and renovation management capabilities to its ventures. www.ellispartners.com.
About Oaktree Capital Management
Oaktree is a leader among global investment managers specializing in alternative investments, with $120 billion in assets under management as of December 31, 2018. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 950 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com.