Consolidated Tomoka Lands $30M Office Building

The 76,000-square-foot asset in Santa Clara, Calif., is fully leased.
The property located at 3600 Peterson Way in Santa Clara, Calif.

The property located at 3600 Peterson Way in Santa Clara, Calif.

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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