A long time player in the Bay Area commercial real estate market, New York-based TIAA-CREF just purchased a trio of buildings in Mountain View for $148.5 million or $1,293 per square foot, according to sources familiar with the transaction. The three buildings are located at 100, 150 and 200 West Evelyn Avenue, along the Caltrain line and a block away from the city’s Caltrain stop. The seller was PSAI Realty Partners, which had owned the property since 2003, according to public documents.[contextly_sidebar id=”jGdvXK8yS4FcpyxSuCjueDSbuelz1tjh”]The buildings are home to some early phase tech firms, such as Awake Networks, Couchbase, Jah Jah Productions and Livongo Health. The buildings are 100 percent leased. TIAA-CREF bought the property for its Real Estate Account. This is a real estate investment entity setup for individual investors and not institutional capital.
“The location near the Mountain View Caltrain Station and downtown Mountain View amenities along with the ability to provide on-site parking will drive tenant demand for Castro Station over the long term,” said Rich Kimble, senior director and head of western region acquisitions for TIAA-CREF Global Real Estate.
TIAA-CREF has shown a strong interest in expanding its ownership throughout the region in the recent past. In July of this year, The Registry reported that the company was buying San Francisco’s iconic 888 Brannan Street office building for roughly $700 per square foot or almost $307 million from Boston-based Beacon Capital Partners. A year earlier, TIAA-CREF spent $274 million, or $722 per square foot, to acquire the 379,330 square foot 55 2nd Street office building, also in San Francisco.
But Mountain View was a place where the firm had made deals in the past, as well. In 2013 it acquired the 133,000-square-foot Charleston Plaza shopping center at 2400 Charleston Road in Mountain View. The seller was Redwood City-based Dollinger Properties, which built Charleston Plaza in 2006. At sale, the property was fully leased to tenants including Bed, Bath & Beyond, REI, PetSmart, Chipotle and Starbucks.
TIAA-CREF, the Teachers Insurance and Annuity Association-College Retirement Equities Fund, is a New York-based provider of retirement services to the academic, research, medical and cultural fields. It has $866 billion in assets under management according to public documents.
According to a recent, third quarter of 2015 CBRE Silicon Valley office market report, Mountain View boasts 1.3 percent vacancy, with asking rents per square foot hovering around $7.44. For Class A office space in the city, the vacancy is below 1 percent at 0.7 percent with asking rents a full dollar higher at $8.42.