By Jon Peterson
San Francisco-based TMG Partners and Boston-based Alcion Ventures have sold 3003 Bunker Hill Lane in Santa Clara for $34.2 million or $422 per square foot, according to sources familiar with the transaction.[contextly_sidebar id=”fgwjcHAn1y50E4FOHckkcJgoS1DtpDf3″]TMG declined to comment on the sales price of the property. The asset was sold by the San Jose office of Eastdil Secured. The buyer of the property is Philadelphia-based Equus Capital Partners. Jonathan Praw, an acquisitions person in its regional office in Los Angeles, did not respond to phone calls or e-mails.
This asset had a great fit with TMG’s overall investment strategy. “The property had all the ingredients we look for in a renovation opportunity: a thriving economic and employment base, strong community—with so much more coming now to Santa Clara with the Levi’s Stadium and what that will bring. It’s a win for us and the tenants,” says David Cropper, managing director of TMG Partners.
TMG made a significant profit on the sale of the property. It had purchased the property in December of 2012 for $12.1 million or $150 per square foot and following a renovation was able to lease the property last year to Jasper Technologies. The tenant took 90 percent of the space right away and plans to move into the rest of the building next year.
Equus Capital owns only one other asset in the San Francisco Bay Area, according to its Web site. This is the 600,437 square CityView Plaza in downtown San Jose. The office/retail project covers 11 acres of land.
The company is a buyer of real estate across the country. It raises capital through private equity real estate funds from a variety of institutional investors. It has raised around $3 billion of equity through a variety of commingled funds. The company is known as a buyer of office, industrial, retail and apartments. It typically looks to purchase properties it can re-position and improve over time.