By Jon Peterson
Madison, New Jersey-based Prudential Real Estate Investors has acquired the 358,000 square 2305 Mission College Blvd. office/R&D facility in Santa Clara for $95 million, sources familiar with the transaction stated.
The property had been owned in a joint venture by two Chicago-based real estate investment firms, Kinship Capital and Pearlmark Real Estate Partners. The firms had acquired the property in December of last year for $67 million.
The sellers declined to comment on any financial specifics of the transaction due to a non-disclosure agreement it signed with the buyer. The same arrangement was inked with the listing agents on the sale, the Santa Clara office of Newmark Cornish & Carey. The brokers that worked on the sale were Phil Mahoney and Jeff Arrillaga.
Kinship was not intending to sell the property as quickly as it did. “Our business plan was to let the property earn its cash flow from the current lease with General Dynamics and then at some point in the future either renew or restructure the current lease. This came faster than we though. The sale allowed us to achieve our return goals much sooner than we thought,” says Nick Thomson, a principal with Kinship. The property is now 100 percent leased to General Dynamics.
Prudential Real Estate Investors acquired the property through one of its West Coast acquisition officers. This was Tim Hennessey, who works out of the firm’s regional office in San Francisco at Four Embarcadero Center. Prudential declined to comment when contacted for this story.