USAA, Admiral Capital and South Bay Development Sell Santa Clara Building for $24MM

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By Jon Peterson

The San Francisco office of USAA Real Estate Company, San Antonio, Texas-based Admiral Capital Group and Campbell-based South Bay Development Company have sold the 74,276 square foot 4500 Great America Parkway office building for around $24 million or $323 per square foot, according to sources familiar with the property.

The three companies involved with the property were in the process of trying to lease the property up when it received an offer from a buyer. “It really didn’t matter to us whether we leased the property or sold the building, as long as it made financial sense for all the parties involved,” says Justin Hildebrandt, an executive director with USAA in its San Francisco office.

[contextly_sidebar id=”R8BmiF3sabQ76VkWGGBb78IqSQqCbeQV”]The buyer of the property is Palo Alto-based CM Capital Corporation. This company has an un-named tenant in mind that is based in China who would occupy the entire property, according to sources that track leasing activity in Santa Clara. CM Capital did not return several phone calls seeking comment for this story.

“This is a property that was built in 1983. We had owned the property along with our partners since June of 2013. We feel good about the time we owned it and the improvements we have made to the property. This included a new façade, landscaping and the parking area,” says Jim Mair, president with South Bay Development. The improvements made to the property have transformed it from a B-quality to an A-quality asset.

The property was sold through the listing agent, Newmark Cornish & Carey. The lead person was Michael Saign, a senior vice president in the Santa Clara office. The buyer was represented in the transaction by Sherman Chan, senior vice president, and Ben Knight, vice president, who work out of the San Jose office for CBRE. The deal was completed on an all-cash basis.

4500 Great America Parkway is very centrally located. It stands at the intersection of Great America Parkway and Patrick Henry Drive. The asset is two blocks from the VTA light rail station and Levi’s Stadium, home of the San Francisco 49ers.

Admiral Capital did not respond to several phone calls for comment for this story. The company owned this property for its commingled fund, Admiral Capital Real Estate Fund. Among the investors in the fund are USAA Real Estate Company and the Teacher Retirement System of Texas. The commingled fund has a value-add investment strategy that includes buying office, apartments, hotels and mixed-use assets that involve retail.

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