Swift Buys Apple-Leased Cupertino Asset for $78MM

Alecta, 10900 North Tantau Avenue, Cupertino, San Francisco, Swift Real Estate Partners, Apple, Union Property Capital, Blackstone, Shopcore Properties, JLL

Alecta, a Swedish occupational pension fund manager, made the decision in the first half of 2016 to sell all of its directly owned real estate assets in the United States and United Kingdom. This portfolio included a total of six properties that are located in the San Francisco Bay Area, and the one located at 10900 North Tantau Avenue in Cupertino was sold to San Francisco-based Swift Real Estate Partners for $78 million, or $760 per square foot for the 102,000 square foot building.

Alecta had purchased the 2009 constructed building in December of 2011 and paid $43.5 million for it.

Apple is tenant in the building, according to several public document reviewed by The Registry.

Swift did not provide any comments or feedback on the acquisition.

According to a Web site managed by Union Property Capital, the building is a LEED Gold-certified Class A office building that is located in the Vallco Industrial Park area of Cupertino. A Kaiser Permanente medical office building is adjacent to the Swift buidling, and another Apple building is next to the Kaiser structure, as well. Most noticeable, however is the Apple Park structure, formerly referred to as the Apple Spaceship or Apple Campus 2, which is across Tantau Avenue.

Five of the properties Alecta had put up for sale have now been acquired. In December of 2016, Blackstone purchased three of the assets for $291 million, and Chicago-based Shopcore Properties bought the Lakeshore Plaza retail center in San Francisco, located at 1501-1599 Sloat Boulevard, for $125,364,000. Swift’s purchase takes the fifth property and the remaining asset is the 600 Townsend Street location in San Francisco, which is occupied by Salesforce.

These assets were part of 22-property portfolio in the United States and 26 properties in the United Kingdom that the pension manager put up for sale last year.

The listing agent on the sale was JLL. Peter Nicoletti, international director in the company’s New York office, lead the team’s marketing efforts. “Portfolio sale volumes are expected to trend upward in the year ahead as investors seek opportunities for an immediate global footprint. This portfolio offers them a unique position to do just that, while also capturing strong consistent returns substantially ahead of their competitive sets,” said Nicoletti, in a prepared statement at the time.

Alecta has been pleased with its returns on its international portfolio. “Our foreign operations have been extremely successful in consistently generating above average returns but they have always been a bit of an organizational anomaly in our streamlined business, which prioritizes economies of scale within our investment strategy. The current strong demand for global real estate offers a good opportunity for us to take yet another step in our development towards our vision, to be the most efficient occupational pension fund in the world,” said Per Frennberg, chief investment officer of Alecta in a prepared statement.

Alecta is a fund with $85 billion of total assets under management.

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