The Deal Sheet
| Kilroy Realty is ending 2012 with gusto. The LA-based REIT just completed a couple huge Bay Area deals, including a long-term lease with Salesforce.com for 100% of its 27-story office tower project at 350 Mission (below). |
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| The cloud-computing company will take up to 445k SF, including 50k SF of must-take space that's subject to Kilroy entitling three additional stories. Jones Lang LaSalle's Christopher Roeder repped Kilroy, while Cushman & Wakefield's Dan Harvey represented the tenant. In addition, Kilroy bought a 12-acre, fully entitled site in Sunnyvale from JP DiNapoli Cos to develop a 587k SF office complex for LinkedIn. CBRE's Sherman Chan and Bob Steinbock served as the investment brokers. Allen Matkins provided legal counsel to Kilroy in both transactions: Tony Natsis and Mike McFadden on the Salesforce lease, and Tony, Peter Roth, and Crystal Lofing on the LinkedIn deal, in which the law firm's Pamela Andes and Sandra Jacobson repped DiNapoli. |
| SALES |
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| Kennedy Wilson and its partners acquired The Ritz-Carlton Lake Tahoe and The Ritz-Carlton Residences, Lake Tahoe, from the property's lenders, with $45M of financing from Pacific Western Bank. KW invested $18M of equity for 50% ownership. The 170-room hotel was Lake Tahoe's first Forbes Four-Star/AAA Five Diamond resort when it was built in 2009. In January, the company will begin marketing 23 residential units. |
| ***Multi-Employer Property Trust, advised by Bentall Kennedy, bought 475 Sansome St, a 21-story, 353k SF office tower in downtown San Francisco. The building is more than 90% leased and was awarded LEED-EB Gold in 2010. HFF brokered the transaction. MEPT is managed by NewTower Trust Co.*** |
| HDSJ LLC, a New York-based private investor, bought a single-tenant retail property NNN fee simple ground lease (635 W Capitol Expressway in San Jose) from Cole Capital of Phoenix for $12M. The closing cap rate was 4.68%, according to Colliers International's Jereme Snyder and Eric Carlton, who repped the seller. The building is occupied by Home Depot on a 25-year ground lease with 22 years remaining.***Gillig acquired a 109k SF former Caterpillar parts distribution facility, 25972 Eden Landing Rd in Hayward, from Caterpillar. Colliers International's Kevin Hatcher, Mark Maguire, and Greig Lagomarsino repped the buyer, while Cassidy Turley's Jay Hagglund represented the seller. *** Well Luck Co bought a 101k SF warehouse, 26599 Corporate Ave on the I-880 corridor in Hayward, from Marfred Industries. Colliers International repped both sides: Kevin Hatcher, Mark Maguire, and Greig Lagomarsino for the seller; Joe Yamin and Chet Barney for the buyer. *** |
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| TMG Partners and Alcion Ventures LP acquired a four-story, 153k SF Class-A office building at 2851 Junction Ave in San Jose (above) from Kaufman Jacobs. The building was recently vacated by the County of Santa Clara; TMG plans to launch a renovation including a new lobby, common areas, outdoor eating areas, and electric vehicle charging stations. Cornish & Carey's Mark Ziemendorf repped the seller, while the buyers represented themselves. TMG and Alcion also bought 3003 Bunker Hill Lane in Santa Clara, an 81k SF office building, with repositioning plans. Cornish & Carey's Jeff Ramirez and Kyle Nelson repped the seller, a partnership of local investors.*** Terreno Realty Corp bought a 47k SF multitenant industrial building, 631 Brennan St in San Jose, for $4.2M. The property is 71% leased to two tenants. LEASES Alameda Electrical Distributors signed a 10-year lease on a nearly 68k SF freestanding building, 3875 Bay Center Place, in PS Business Park in Hayward. Colliers International repped both sides: Todd Severson, Mark Tristak, and Ned Wood for the tenant; Greig Lagomarsino and Joe Yamin for owner PSB Northern California Industrial Portfolio LLC. ***
*** Weight Watchers and women's apparel shop Bay 6 leased 1,225 SF and 4,655 SF, respectively, at Alameda South Shore Center. Cornish & Carey's Julie Taylor and Stephen Rusher repped owner Jamestown in the Weight Watchers lease, while Terranomics? Annie Jabuka represented the tenant. PRI's Deb Kravitz represented both sides in the Bay 6 transaction. |
