Westcore Properties, LLC AND LONGWING acquire R&D / Industrial BUILDINGS in FREMONT, CALIFORNIA FOR $15.1 MILLION
The 6-Building Acquisition Totals 167,305 Square Feet Within Fremont Business Center
Marks Partners’s Second Silicon Valley Purchase Over the Past 2 Weeks
SAN FRANCISCO, CALIF., May 3, 2005 – Marking its second major acquisition in Silicon Valley over the past two weeks, the San Francisco office of Westcore Properties, LLC, an entrepreneurial real estate investment company, and Longwing Real Estate Ventures, LLC, a member of the Dubai Investment Group, have acquired six, multi-tenant R&D / industrial buildings totaling 167,305 square feet for $15.1 million. The buildings are located within Fremont Business Center, a 10-building industrial park. The property offers easy access to the 680, 880, and 237 Freeways and is situated on the north side of Hammond Ave. between Westinghouse Dr. and Warm Springs Blvd. – one of the most desired locations in the city of Fremon.
Bob Steinbock of CB Richard Ellis represented Westcore Properties as well as the seller, Fremont, Calif.-based Warm Springs Associates I in the transaction.
“Fremont has been perceived as a secondary market, however, as evidenced by nearly 900,000 square feet of positive net absorption in 2004 alone, the area has proven to be a healthy region for business,” said Neil Johnson, director of acquisitions, Northern California for Westcore Properties. “The city offers more affordable housing, an abundance of retail and recreational amenities as well as access to a large labor force and the high-end neighborhoods on the West side of the Bay Area.”
According to Johnson, the property was priced well below replacement cost making it a desirable acquisition for Westcore Properties. Additionally, at just 72 percent occupied, the buildings’ multi-tenant configuration presented an opportunity to take advantage of an improving leasing market.
The six buildings are situated on 11.26 acres and were constructed in the early 1980s. Following are addresses and square footage of each building:
Westcore Properties has been an aggressive investor in the Northern California market. Just two weeks prior to this acquisition, Westcore Properties and Longwing announced they had purchased a 23-building, 613,358-square-foot R&D, light industrial and office portfolio for $78,625,000 in the cities of San Jose, Santa Clara, Sunnyvale and Fremont. Additionally, in late 2004, the partners acquired Vasona Technology Park, a seven-building office / R & D park totaling 307,000 square feet for $52.8 million in Campbell, Calif.
Since January 2005, Westcore Properties has acquired approximately $115 million of properties including this latest transaction. The company’s investment plans for this year are aimed at $500 million in industrial, retail and office properties in California and the western United States that will include core, core-plus and value-added opportunities.
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