(EDITOR’S NOTE: The Registry first reported this sale in April of 2021. Washington Holdings purchased the property at that time for $170 million.)
San Francisco – August 5th, 2021 – CBRE Capital Markets’ Debt & Structured Finance team has secured a $113 million loan for the acquisition of RioTech R&D Park, a Class A R&D campus in San Jose, Calif. The property is centrally located in the North San Jose submarket with immediate access to mass transit as well as the Bay Area’s most prominent highways.
The seven Class A R&D buildings, totaling 377,776 square-feet, have been fully renovated over the last five years and are currently 79 percent leased with a weighted average lease term (WALT) of nearly six years with strong tenancy.
The San Francisco-based CBRE team led by Brad Zampa and Mike Walker arranged the five-year, interest-only financing from an international bank on behalf of the sponsor, Seattle-based real estate investment firm Washington Holdings.
“We are very pleased with the execution and welcome this opportunity to build this new lender relationship brought to us by Brad and his team at CBRE,” said Jason Hizer, Chief Financial Officer of Washington Holdings.
“The depth and breadth of liquidity for larger core plus office/R&D assets in technology hubs is impressive,” said Mr. Zampa. “Life companies, international and domestic banks, CMBS lenders and debt funds are all competing for well-located, high quality, leased assets with best-in-class sponsorship. RioTech checked all the boxes.”
The Silicon Valley Research and Development (R&D) market, comprised of over 145 million square-feet, is consistently one of the nation’s best performing markets. Over the last ten years, driven largely by the exponential growth of the technology industry, Silicon Valley’s R&D market has steadily increased in both occupancy and rental rates. The R&D vacancy rate at the end of the second quarter of 2021 was 10.1 percent, and the overall average asking rate was $2.72 per square-foot per month on a triple net basis (“NNN”).
RioTech is in the heart of The Golden Triangle, the area between Highways 101 and 237 and I-880 that incorporates parts of North San Jose, Santa Clara, Sunnyvale and Milpitas, and serves as a preferred office location for several world-leading technology firms.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About Washington Holdings LLC
Washington Holdings acquires, develops, manages and invests in real estate assets within the western United States. They target hospitality, multi-family and R&D/Industrial assets in greater Seattle and other major West Coast markets. They invest directly as well as in joint-venture arrangements with other developers. Washington Holdings is also an active supplier of mezzanine debt and preferred equity to other property owners and developers on the West Coast.