Large Bay Area Portfolio of Office, Retail & Industrial Properties Sells for $100M

A New York-based real estate investment group recently acquired a significant portfolio of office, commercial, and industrial buildings in the South Bay area of California. The deal, valued at over $200 million, demonstrates continued investor interest in Bay Area properties despite challenging business conditions in the commercial real estate sector.

Managed by DRA Advisors, the buying group paid $222 million for buildings located in San Jose, Milpitas, and Santa Clara. Here are the details of the acquisitions:

1. Milpitas: The group purchased four buildings at 901, 1001, 1123, and 1151 Cadillac Court for $75 million. These buildings collectively span 301,600 square feet.

2. San Jose: The acquisitions in San Jose included a $57 million deal for a building at 591 North King Road covering 213,600 square feet, and a $17 million purchase for a building at 1721 Rogers Ave. with 22,200 square feet.

3. Santa Clara: The group paid $73 million for four buildings located on Leonard Court, specifically 3401, 3501, and 3521 Leonard Court.

The transactions were finalized in early May, with DRA completing purchases in San Jose and Milpitas on May 1, and the Santa Clara acquisitions on May 2. The properties, previously owned by Blackstone through its acquisition of PS Business Parks, encompass a mix of office, commercial, and industrial spaces with diverse tenant occupancies.

Despite challenging market conditions, DRA's investment in the South Bay buildings underscores the ongoing appeal of Silicon Valley's commercial real estate market to investors.