Consolidated Tomoka Lands $30M Office Building
- Oct 19, 2016
By Laura Calugar
Santa Clara, Calif.—Consolidated-Tomoka Land Co. has announced the purchase of a single-story, Class A, two-tenant office building in Santa Clara, Calif., for $30 million. The transaction was partially funded using the proceeds from the recent land sales of a 17-acre and 4.5 acre site, as well as the sale of a vacant PNC property.. The balance of the purchase is expected to be part of a 1031 like-kind exchange.
Located at 3600 Peterson Way, the property is immediately adjacent to the newly developed Campus at 3333, a 1.5 million-square-foot office development by Beacon Capital and Menlo Equities. The property is also close to the 218,000-square-foot office building recently purchased by Boston Properties and near Santa Clara Square, the $1.0 billion mixed-use project developed by Irvine Co.
The asset is situated on approximately 5.2 acres and is 100 percent leased to Centrify Corp. and Adesto Technologies under triple-net leases with remaining terms of approximately four years and seven years, respectively. The property was built in 1978 and underwent a complete $14 million renovation in 2014. The current zoning of the parcel also allows for an additional 100,000 square feet of density.
“We are pleased to have purchased this high-quality, newly renovated property in one of the strongest markets in the country at the high end of our cap rate range. Year to date we have acquired approximately $79.8 million of new income property investments at a weighted average cap rate of 6.14 percent, which is within our 2016 acquisition and cap rate guidance,” John Albright, president and CEO of the Consolidated-Tomoka, said in a prepared statement.
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