The 163,000 square foot property situated in one of the busiest thoroughfares in Silicon Valley is now under new management. Stevens Creek Executive Park, located at 4300–4340 Stevens Creek Blvd., was purchased by a joint venture between the Los Gatos, Calif.-based FortBay and Colony Capital for $53 million, or approximately $325 per square foot, according to public records.
FortBay, which is looking to achieve a cap rate of a little under 6 percent, likes the property because of its strategic location between large employers and major retail locations. The report states that the location is 10 percent vacant, and LoopNet shows 6 suites available for roughly 5 percent vacancy. All asking rents are $2.75. Many of the suites have been renovated, and the new owners have plans to update more.
FortBay was cofounded in 2015 by Tom deRegt, Perry Hariri and Lance Tate. While this marks the company’s second purchase in the Bay Area (the company paid $145 million in late 2015 to buy a 208-unit apartment property in Mountain View), deRegt and team have been active in the region for some time. deRegt had developed and owned properties in Monterey County as well as Silicon Valley. Hariri specialized in development and repositioning of commercial, residential, multi-family and mixed-use projects in core infill markets in California from 2008 to 2015 and managed for Colony Capital a real estate portfolio comprising over 1,500 commercial and residential real estate assets throughout the United States. Prior to FortBay, Lance co-founded Urban West, a real estate development and investment firm focused on ground up and value add commercial and residential infill projects.