S. Korean Soulbrain Spends $160MM on Three San Jose Properties

Soulbrain Holdings, San Jose, Paramount Advisory, Heritage Capital Management, CMD Advisor

(EDITOR’S NOTE: The properties were sold by San Francisco-based DivcoWest, which had owned them since 2018 and paid $50 million for then-vacant assets. Today, two out of three of the buildings are leased to ASML, which specializes in semiconductors.)

Paramount Advisory LLC (“Paramount”), an alternative asset advisory and investment banking firm with emphasis in real estate capital markets, headquartered in Boca Raton, FL, and offices in New York City, NY, and Seoul, Korea, successfully closed a $160,000,000 (roughly $500 per square foot) acquisition of three class A flex office properties in San Jose, California. 80 W. Tasman Drive, 10 W. Tasman Drive, and 125 Rio Robles collectively consist of more than 320,000 square feet of prime R&D and flex office space.

Paramount was retained to provide buy-side advisory services to a major Korean semi-conductor manufacturer (ed. note: Soulbrain Holdings Co.) and its asset manager Heritage Capital Management Co, Ltd., as well as buy-side representative CMD Advisor headed by Dominic Lee.

Among other advisory work, Paramount was engaged to resolve complex issues through creative deal structuring and also coordinated the raise of $78MM through a competitive 5-year fixed-term balance sheet financing on behalf of its clients. Paramount’s managing partner DH Kang stated, “Although this particular transaction looked vanilla from 30,000 feet, when we were deep in diligence in conjunction with counsel, we uncovered many issues that needed creative solutions and negotiations. Overall, we are very pleased with the outcome and glad that we could help our clients close on their first major cross-border acquisition.” Paramount’s Principal David Jankowitz added, “This transaction marks one of the major equity transactions post-quarantine to originate from Korean investors. It is definitely an encouraging sign for the upcoming year as we know that there is tremendous amount of capital from Korean institutions that was not allocated in 2020 due to the coronavirus. These funds are seeking to be allocated immediately and aggressively now and throughout 2021. We aim to assist our clients as we did in this transaction and bring those allocations to many interesting deals throughout the United States.

”Paramount was established in late 2017 and has successfully advised and closed more than 2 billion in institutional quality real estate capital markets transactions. Although these deals predominantly involved Paramount’s representation of Korean institutional capital, we have partnered with many U.S. institutions in various capacities to close our deals. 

Heritage Capital Management Co., Ltd. is a Seoul, Korea based asset management firm specializing in real estate transactions with AUM of USD 1.9B and over USD 2.8B in successful closings.

West Coast Commercial Real Estate News