SAN RAFAEL, CALIF. W3 Partners, an institutional real estate investment manager and operating company, and AllianceBernstein U.S. Real Estate Partners L.P., have announced a 10-year, 64,336-square-foot, full-building lease with Maryland-based Ciena Corporation (Nasdaq: CIEN). The building is located at 3939 North First Street in San Jose and will be a relocation from another San Jose location.[contextly_sidebar id=”710206e8806ee5cd65d519c34ff27c35″]Ciena Corporation , a provider of communication networking equipment, will complete its tenant improvements over the summer and plans to move into the building this September.
The building complex was acquired by the W3 joint venture in December 2012 from Prologis Corporation. At the time, the building was vacant with some improvements completed. W3 created a market-ready building with flexible workspaces and added amenities sought by tech companies.
“After just five months of ownership and only a month after completion of our improvements, W3 has fully leased the 3939 North First Street building in San Jose,” said Susan Sagy, Co-Founding and Managing Partner, W3 Partners. “We were able to accomplish our goal for this asset – which was to add significant long-term value creation by upgrading the improvements to the quality and creative standards required by today’s technology tenants and then leasing it quickly to a strong tenant. Ciena Corporation is a major win for our ownership as well as for the thriving San Jose market.”
“A common thread in our investment philosophy is to buy well-located assets, which appeal to the innovative companies that dominate our West Coast markets. We have studied these companies and have deep knowledge and experience in creating the environments they seek,” said Diane Olmstead, Co-Founding and Managing Partner at W3.
W3 was represented by Steve Horton, Alan Gutterman and Jon Decoite of Cassidy Turley and Ciena Corporation was represented by Jerry Inguagiato and Gil Hutzler of CBRE.
This transaction represents the second corporate headquarter project completed and leased by W3 Partners in Silicon Valley in the past year. The firm previously acquired a three-building campus on Rio Robles in North San Jose and leased the only vacant building in the complex to Extreme Networks in December 2012.
About W3 Partners
W3 Partners (www.W3partnersllc.com) is a privately-held, women 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 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.
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.
About AllianceBernstein U.S. Real Estate Partners L.P.
AllianceBernstein U.S. Real Estate Partners L.P. is a $680 million fully discretionary real estate private equity fund, sponsored by AllianceBernstein L.P., which targets investments in real estate focusing on all product types and geographies within the U.S.