San Francisco, CA – January 27, 2014 – Ridge Capital Investors, LLC and Contrarian Capital Management, LLC have acquired Balentine Park, located at 39889 Balentine Drive, in Newark, California via trustee sale for $9 million ($82/sf). The outstanding loan balance at foreclosure was $19.6 million. The 109,200 square foot, three-story office property is well located just off of I-880 and is one of the premier multi-tenant buildings within the Fremont/Newark submarket of Silicon Valley.
The property, which was 70% occupied at foreclosure, will undergo an extensive, multi-million dollar interior and exterior renovation in 2014. “Our focus is to bring this property back up to a market leading position where tenants will enjoy a high quality, yet cost effective working environment in one of the most accessible suburban Bay Area locations,” said Trevor Wilson, managing director of Ridge Capital Investors. The Fremont/Newark submarket has traditionally been home to smaller service-oriented firms and technology and engineering start-ups and Balentine Park caters well to these tenants with its excellent regional access and small to mid-range sized suites. The property will be managed by Voit Real Estate Services and leased by Walt Stephenson and Scott Dever of Cushman & Wakefield.
The acquisition fits well within the venture’s strategy of investing in core locations with strong employment fundamentals. The Silicon Valley market ranks amongst the most desirable office and R&D locations in the country due to its diverse economy and healthy technology base. The Company plans to capitalize on these market trends via an attractive investment basis that will allow the building to be marketed at a highly competitive lease rate.
This is the third office investment within the Silicon Valley for Ridge Capital Investors in the last 18 months. Over the next twelve months, the company plans to invest $50 million of equity in both multifamily and commercial properties in the Bay Area.
Ridge Capital Investors, LLC, a real estate investment and operating firm located in San Francisco, CA, invests in commercial and multi-family properties throughout the Bay Area and the Pacific Northwest. Founded by Trevor Wilson and principals Brian Printz and Thomas Daniel, the company focuses on opportunities where it can create significant value by capitalizing on the team’s collective experience from over $2 billion of real estate investment and development over the past 20 years.
Contrarian Capital Management, LLC, a distressed investing specialist, was established in 1995 by Jon Bauer, Janice Stanton and Gil Tenzer. The firm manages approximately $4 billion in assets and employs 52 professionals across offices in Greenwich (CT), Paris, São Paulo, and Hong Kong. Distressed real estate investing has been a key focus for Contrarian since the inception of the firm. Gil Tenzer, who is one of the three Principals of Contrarian, is a 24 year real estate veteran and spearheads the efforts of the firm in the real estate sector. Utilizing proprietary sourcing capabilities and sometimes working with local operating partners, the team seeks opportunities in which commercial real estate and real estate debt can be purchased at a significant discount to intrinsic value. Contrarian’s ability to underwrite, diligence and close transactions quickly, combined with a strong industry reputation for integrity, make the firm a preferred counterparty for sellers that need certainty of execution.