DivcoWest Buys 251 KSF, 5-Property Silicon Valley Office Portfolio
- Dec 12, 2011
December 12, 2011
By Nicholas Ziegler, News Editor
Picking up five office properties in Santa Clara, Calif., DivcoWest spent nearly $40 million on the 251,000-square-foot Walsh @ Bowers portfolio. The buildings, sold by RREEF, were marketed by Cassidy Turley.
The offices, located at 2400, 2424, 2630 and 2710 Walsh Ave. and at 2855 Bowers Ave., were built between 1975 and 1980. Major tenants include the Institute for Business & Technology, Hanwha Solar and Evans Analytical Group, which each occupy individual buildings. Total occupancy is approximately 70 percent.
Calling the properties “an execellent portfolio in a highly desireable location,” Stuart Shiff, CEO of DivcoWest, added that the buildings’ sizing would accommodate a wide variety of tenants, from major corporations to smaller start-ups.
According to a report by Jones Lang LaSalle, the Silicon Valley area has become a hotspot for office leasing and for venture-capital funding. “Leasing activity in 2011,” the report noted, “has been robust. Strong demand is creating limited space availabilities.”
Divco will market 2400 Walsh and 2424 Walsh for sale in early 2012. The two buildings, which are not located next to the other three addresses, have stable cash flow that will provide an investor with an attractive investment opportunity.