By Jon Peterson
New York City-based TIAA-CREF has closed on the acquisition of five buildings totaling 312,141 square feet within the Newark Technology Park in Newark for $41.4 million, according to public records.[contextly_sidebar id=”YkHRAIDFNyDW01nD1zS7OR5ymOFx0OKM”]The buyer declined to comment on the purchase price when contacted for this story. The seller of the buildings was Palo Alto-based Broadreach Capital Partners. The properties are located at 39660 Eureka Drive, 39630 Eureka Drive, 39611 Eureka Drive, 39655 Eureka Drive and 39745 Eureka Drive.
“This asset is a great addition to our Bay Area portfolio. It’s 100 percent leased, offering cash flow stability and a strong yield. We expect positive long-term performance given the limited new supply of this type of product in the East Bay. We view this sector favorably overall in terms of rent growth and demand, and we’ll continue to pursue industrial and R&D acquisitions in key markets throughout the U.S.,” says Rich Kimble, senior director and head of western regional acquisitions for TIAA-CREF Global Real Estate.
TIAA-CREF made the acquisition in Newark for its investment fund, the TIAA Real Estate Account. This is a variable annuity account that the manager first formed in 1995. It now has total assets totaling more than $22 billion. The Real Estate Account is geared for individual investors rather than large institutional capital sources.
This investment fund allows individual investors to get direct access to placing some capital into commercial real estate. It offers diversification beyond investing in equities and fixed income. The Real Estate Account buys a mixture of properties like office, industrial, retail and apartments. It has a national investment strategy.