By Jon Peterson
Newark, N.J.-based Prudential Real Estate Investors has acquired the 292,906 square foot Mission Towers I office building located at 3975 Freedom Circle in Santa Clara for $508 per square foot or $148 million, according to sources with direct knowledge of the transaction.
PREI declined to comment when contacted for the story. The same response came from its seller. The property had been owned by Chicago-based Equity Office Properties, which has a Northern California regional office in San Mateo at 2655 Campus Drive.
Mission Towers I was constructed in 2008. It is currently 93 percent occupied with 21,000 square feet of space available for less.
The real estate brokerage community believes that the buyer is getting a strong asset. “Mission Towers I is a Class A institutional quality asset in a strong market,” says Joe Moriarty, executive vice president with CBRE in its San Jose office.
Prudential is also very close to buying another office property in Santa Clara. This is the 283,135 square foot Cisco Tower office building located at 3979 Freedom Circle (pictured above). The seller of the property is San Francisco-based Shorenstein Properties. No pricing information was available on this asset.
Cisco Tower has some significant vacancy. The property now has 170,000 square of space available for lease, according to sources familiar with the property. This space is where Cisco will not be renewing its lease. The 12-story complex was developed in 2001, according to Shorenstein’s Web site.
Shorenstein acquired this property for its commingled fund, Shorenstein Realty Investors 7, an investment fund that was formed in 2003. The company raised $775 million of equity for the fund, which included $75 million from the company itself. All of the investments for the fund were completed over a 37-month process.
Prudential is no stranger to owning office buildings in this part of Santa Clara. It’s also the owner of the 317,000 square foot 4555 Great America Parkway. The real estate manager has had some recent leasing success at this location, which should make them comfortable about leasing space in the Cisco Tower property.
Prudential recently signed a lease with Barnes & Noble.com for 55,426 square feet, according to industry sources.
Photo courtesy of Shorenstein