DivcoWest Takes 261 KSF Silicon Valley Office Complex for $71M
- Mar 12, 2012
By Nicholas Ziegler, News Editor
Technology continues to fuel the nation’s economic recovery. In a 261,059-square-foot transaction, DivcoWest acquired the Caribbean Corporate Center, a portfolio of four, 100-percent leased office buildings in the Silicon Valley area for a reported $71 million.
The properties, located at 1310-1327 Chesapeake Terrace in the Moffett Park submarket, were sold by Eastdil Secured on behalf of LaSalle Investment Management.
Sam Hamilton, the managing director at DivcoWest who oversaw the acquisition process, said Silicon Valley remains a strong target market for the firm. “We believe that Caribbean Corporate Center fits nicely in to our overall Northern California portfolio, and provides a strategic addition to our Silicon Valley portfolio,” he said.
According to a report by Colliers International, the outlook for the Silicon Valley market in 2012 is very optimistic “We’ve just had five-straight quarters of hefty reductions of available space and we’re not seeing any let-up in sight,” Jeff Fredericks, a managing partner with Colliers, said in the firm’s Trends2012 report. “In 2011, the Valley finally took off in terms of gross absorption, which translated into 27.9 million square feet for the year or a 28 percent increase over 2010. While the volume of large deals may not be repeatable, the Valley is poised to generate more net absorption in 2012, even with a little less gross absorption.” Colliers’ forecast is for 27 million square feet of gross absorption for Silicon Valley in 2012, with six million square feet of positive net absorption.
The Caribbean park is fully leased to tenants including Accuray Inc., a firm that makes chemotherapy treatments, and Cephid, which works with DNA to identify disease. The corporate center was built in 1989 and was updated between 2008 and 2010.
DivcoWest has been targeting the Silicon Valley area for its acquisitions. In December, the firm spent nearly $40 million on the 251,000-square-foot Walsh @ Bowers portfolio.