R&D Property Trades Hands in Santa Clara; Last Milpitas Mervyns Completes Portfolio

As commercial development in Silicon Valley runs rampant with huge new projects, existing properties also continue to drive investor interest, recent deals show. Foster Enterprises recently acquired an R&D building in Santa Clara, while Shapell Properties completed the acquisition of the last vacant Mervyns store in Milpitas for a fee of $12 million.

Commercial development in Silicon Valley seems to be running rampant with large new projects, but recent deals have shown that existing properties are also drawing investor interest in the area.

Foster Enterprises recently acquired an R&D building in Santa Clara, while Shapell Properties completed the acquisition of the last vacant Mervyns store in Milpitas for a price of $12 million.

Foster Enterprises, the company founded by the developer responsible for Forest City in the 1960s, has acquired the research and development property at 5440 Patrick Henry Drive from Abbott Labs.

The facility offers the new owner 185,000 square feet of R&D space in Silicon Valley, the strongest tech market in the country.

Seller Abbott Labs will stay on as the tenant for a few months as per a leasing agreement completed at the time of the transaction. Abbott will subsequently move to its new facility at 4551 Great America Parkway, recently leased from the Sobrato Organization, according to a report by The Silicon Valley Business Journal.

The Milpitas Mervyns site traded hands from Macerich Co. to Shapell Properties for a total of $12 million.

The new owner had already owned most of the Milpitas Town Center, and with the acquisition of the former department store, Shapell has rounded out its property with the 75,000-square-foot facility located at 749 E. Calaveras Boulevard.

The site has had various development initiatives fall through in recent years, with the latest being a project for a Jewel of India Mall, a plan that fell through last year, according to a SVBJ report.