SAN RAFAEL, CALIF. Citing a remarkable opportunity to acquire an off-market asset in the heart of Silicon Valley, W3 Partners, an institutional real estate investment manager and operating company, and Ridge Capital Partners, LLC, a private equity investment firm, have acquired a three-building R&D office complex in San Jose, Calif. Built in 1985 and completely renovated in 2011, the 185,074-square-foot Class A property is situated on approximately 11 acres at 51, 77 and 145 Rio Robles Drive.
“This purchase fits perfectly within our acquisition strategy. Our goal is to acquire value-add assets that are located in markets with great employment fundamentals and demand a creative approach to unlocking opportunity,” said Susan Sagy, managing partner, W3 Partners.
W3, a well-capitalized investment manager focused on a West Coast value-add office and office R&D strategy, will be the majority partner and operator for the venture.
Two of the three buildings within the property are fully occupied by SunPower Corporation (Nasdaq: SPWR). SunPower designs, manufactures, and markets high performance solar electric power technologies. The third building, which totals 56,895 square feet, is currently vacant.
A key acquisition strategy was working with SunPower to consolidate from its occupancy of all three single-story buildings into two buildings, providing the new owners with significant long-term value creation through lease up of the now vacant building.
“145 Rio Robles represents the highest quality working environment for a full-building tenant that is seeking a headquarters presence in one of Silicon Valley’s best locations,” said Trevor Wilson, managing partner, Ridge Capital, who will focus on releasing the building for the ownership.
“Trevor and I have worked together for years at Broadreach and it is an opportunity for our new companies to join forces in acquiring a significant off-market asset in the heart of Silicon Valley, adjacent to one of the primary traffic corridors in San Jose,” noted Sagy.
Wilson added that the team is purchasing a high quality asset with large floor plates – 50,000 square feet plus – a size range that is in great demand but in limited supply in the market.
The Silicon Valley office/R&D area remains amongst the most desirable markets in the country due to its diverse economy. With tenants now looking to North San Jose, market vacancy is expected to drop over the next eight quarters.
The seller, Lane Partners and Walton Street, was represented by Newmark Knight Frank Cornish & Carey. The buyers represented themselves.
About W3 Partners
W3 Partners (www.W3partnersllc.com) is a privately-held, women and minority owned investment management firm that combines the best attributes of a real estate operating company with those of an investment fiduciary. W3 focuses on making investments in office and office/R&D assets with value added or repositioning potential in strategic locations in the San Francisco Bay Area, Southern California and Pacific Northwest. W3 Partners was founded in 2009 and formed a strategic joint venture with Dallas-based, Akard Street Partners, L.P., an investment partnership operated by Hunt Realty Investments, Inc. Akard Street Partners is a partnership created by Hunt Realty and the Teacher Retirement System of Texas to invest capital, in selected commercial real estate operating companies across the United States.
About Ridge Capital Investors
Ridge Capital Investors, LLC, a real estate investment and operating firm located in San Francisco, CA, invests in multi-family and commercial properties throughout the Bay Area and the Pacific Northwest. Founded by Trevor Wilson, formerly with Broadreach Capital Partners, LLC, and principals, Brian Printz, Scott Kotarba and Thomas Daniels, the company focuses on opportunities where it can create significant value by capitalizing on the team’s collective experience in over $2 billion of real estate investment and development over the past 18 years.
About Hunt Realty Investments
Hunt Realty Investments, Inc., (www.huntrealty.com) serves as the centralized real estate investment management company for Hunt Consolidated, Inc., which is part of the Hunt family of companies directed by Ray L. Hunt. Hunt Realty has been active in acquisition, ownership and investment in the real estate industry for more than 30 years and works to identify and invest in unique opportunities that differentiate themselves from the typical commodity investments available in all markets. Hunt Realty seeks investments that may have a higher level of risk, but also the potential for commensurate high performance. For more information on Hunt Realty Investments or Akard Street Partners, contact Clyde Robinson, Senior Vice President & Director of Capital Strategies, by email email@example.com or by phone 703.761.7085.
About Teacher Retirement System of Texas
The Teacher Retirement System of Texas delivers retirement and related benefits authorized by the Texas Legislature, and manages the $95.2 billion trust fund established to finance member benefits. Nearly 1.3 million public education and higher education employees and retirees participate in the system.