Madison Acquires Stake in Two-Property Portfolio in California
- Oct 16, 2013
Two Bay Area properties were the object of a recent stake acquisition by private equity firm, Madison International Realty. The company has moved on the market for a share of a two-building portfolio owned by a closed-end fund sponsored by Deutsche Asset & Wealth Management for an undisclosed fee. According to a press statement released on behalf of the buyer, Madison has acquired a 26 percent stake in the two California assets.
The two-asset portfolio includes the prestigious 111,775-square foot Saks Fifth Avenue Store in San Francisco, as well as a San Jose R&D center totaling 315,450 square feet of space. The retail property is occupied by high-end department store brand Saks Fifth Avenue, and is located at 384 Post Street on Union Square. The location, currently on a long-term lease with the luxury brand, was originally built in 1982 and sustained extensive renovations back in 2001.
The other property that was part of the stake acquisition is located at 3403 Yerba Buena Road in the Silicon Valley city of San Jose. The research and development center is located on a sprawling lot totaling 36 acres. The property offers 600 parking spaces, and is currently leased to Celanese Americas Corporation on a long-term deal.
According to the President of Madison International Realty, Ronald M. Dickerman, the company acquired the stake in the two-building portfolio while also providing “an exit strategy for existing investors while acquiring an interest in two high-quality assets located in major growth areas leased to long-term tenants.”