(EDITOR’S NOTE: According to sources with knowledge of the transaction detail, the site was acquired for $13.9 million. The seller, an entity associated with Danville-based Braddock & Logan sold the property. It had acquired the land in April of 2019 for $20,687,000, according to public documents.)
Morgan Hill, California – Trammell Crow Company (TCC), one of the largest commercial real estate developers in the United States, announces that it has acquired a fully entitled 24-acre site in Morgan Hill, California. The firm is planning to develop up to 440,000 square feet of light industrial space across five Class A buildings on the currently undeveloped land, which is located west of Highway 101 at Butterfield Boulevard and Sutter Place. The site is within the Morgan Hill Ranch Business Park.
“The demand for new, Class A light industrial space in Santa Clara County continues to be robust, even in the current economy. Similar to our Morgan Hill Technology Center project that we plan to build at Highway 101 and Cochrane Road, this investment in the Morgan Hill community will generate local jobs and needed tax revenue,” said Don Little, Senior Vice President of TCC’s Northern California Business Unit. “We have been able to develop mutually beneficial relationships with City leaders through our work at the Morgan Hill Technology Center, and we look forward to continuing to work closely with them and their staff on this important new project in Morgan Hill.”
TCC plans to submit a development application for this new project to the City during the third quarter of this year. The intended project is consistent with the existing development agreement for the land.
“This project is a testament to the value of a high-quality development partner in TCC. It was sourced, processed and closed with actionable financing all post-COVID,” said Jerome Nichols, Deputy Portfolio Manager for the CBRE U.S. Development Partners fund series.
Robert Jue, Head of Development for CBRE Global Investors Americas, added, “The Morgan Hill Ranch site is the final commitment in one of CBRE Global Investor’s development funds. The fund series has made 50 investments over the past 10 years. Our fund team is actively thinking about our next steps when it comes to investment in various development opportunities as we approach the next economic cycle.”
TCC currently owns an additional 60 acres of undeveloped land on the immediate east side of Highway 101, between Cochrane and Half Roads. On this site, the firm plans to build an industrial and manufacturing technology park comprised of six buildings for prospective occupants as headquarters’ facilities, regional manufacturing and assembly/distribution facilities, and expansion space for existing Morgan Hill commercial tenants.
About Trammell Crow Company
Trammell Crow Company (TCC), founded in 1948, is one of the nation’s leading developers and investors in commercial real estate. The Company has developed or acquired 2,700 buildings valued at nearly $65 billion and over 590 million square feet. As of June 30, 2020, TCC had $13.7 billion of projects in process and $6.1 billion in its pipeline. It employs more than 550 professionals in the United States and the United Kingdom.
Trammell Crow Company’s teams are dedicated to building value for its clients with professionals in 18 major cities throughout the United States and London. The company serves users of and investors in office, industrial, retail, healthcare, multi-family residential, through its operating subsidiary High Street Residential, and mixed-use projects. For those who occupy real estate, TCC can execute the development or acquisition of facilities tailored to meet the needs of its clients. For investor clients, the company specializes in joint venture speculative development, acquisition/re-development ventures, build-to-suit development and providing incentive-based fee development services.
TCC is an independently operated subsidiary of CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, and the world’s largest commercial real estate services and investment firm (in terms of 2019 revenue).
About CBRE Global Investors
CBRE Global Investors is a global real assets investment management firm with $109.6 billion in assets under management* as of June 30, 2020. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2019 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers.