Ridge Capital Investors Joint Venture Acquires Three-Building R&D Portfolio in Pleasanton for $35.1MM

Ridge Capital Acquires Industrial Portfolio

San Francisco, CA – Ridge Capital Investors, LLC and Contrarian Capital Management, LLC have acquired a three building, 191,009 SF Class A office/R&D portfolio in Pleasanton, CA for $35.1 million.

The properties — 5870 Stoneridge Drive, 4511 Willow Road, and 5735 West Las Positas Boulevard — are considered to be the top tier of the Tri-Valley R&D market, with high-quality recent construction, functional space, abundant parking and access to nearby amenities and transportation.

The properties were acquired as REO from a CMBS trust with CW Capital acting as special servicer. CW Capital took control in 2011 after the buildings and the market had suffered from high levels of vacancy during the most recent downturn. Currently, the three buildings are 80 percent leased.

Ridge and partners are planning to rebrand the portfolio and to execute a repositioning plan that includes major interior upgrades, new signage, landscaping, painting and parking lot upgrades. The new branding, along with market-ready renovation of the vacant space, will bring the portfolio to a Class A tech/creative quality that is rare, yet highly sought after in this market. The overall business plan is to invest capital strategically to bring the portfolio to a level of finish and appeal that is frequently found in the best locations of Silicon Valley.

The Portfolio is located within the 10 million-square-foot Hacienda Business Park, located at the Dublin/Pleasanton BART station. The Park houses more than 650 companies and employs approximately 18,000 people. The Park has averaged 91% occupancy from 2008 to 2014 and consistently outperforms its submarket. R&D properties within the market have fared even better as the market has improved, with vacancy less than 7% for the first quarter of 2015, representing a significant drop from 12% peak in the early stages of this cycle. Recent leasing activity has produced increasing rates of absorption and suggests that this trend is likely to continue.

About Ridge Capital Investors
Ridge Capital Investors, LLC, a real estate investment and operating firm located in San Francisco, CA, invests in commercial and multi-family properties throughout Northern California. Founded by Trevor Wilson and Principals Brian Printz, Thomas Daniel, and David Karol, the company focuses on opportunities where it can create significant value by capitalizing on the team’s collective experience from over $3 billion of real estate investment and development over the past 20 years.

About Contrarian Capital Management
Contrarian Capital Management, L.L.C, 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 62 professionals across offices in Greenwich (CT), Paris, London, São Paulo, and Hong Kong. Distressed real estate investing has been a key focus for Contrarian since the inception of the firm. Gil Tenzer is a 28-year real estate veteran and spearheads the efforts of the firm in the real estate sector. Contrarian 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, conduct due diligence and close transactions quickly, combined with a strong network of local operating partners, make the firm a preferred counterparty for sellers that need certainty of execution.

The property will be leased and marketed by Jeff Birnbaum and Andrew Schmitt of CBRE.

West Coast Commercial Real Estate News