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6/30/22
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A joint venture between Ridge Capital Investors & Westbrook Partners has acquired a 258.1k sf, Class A industrial facility in Silicon Valley for $45 mil, or $174/sf. The structure, located on 14.7 acres at 755 Jarvis Drive within Morgan Hill Ranch Business Park in Morgan Hill, was sold by sold by Bridge Group Investments LLC.
The two-story facility was built in 1997 as a medical device manufacturing facility for Abbott Laboratories. It features a fully conditioned warehouse with 30 ft clear heights, four loading dock doors, four grade-level doors, 8,000 amps of power and 458 parking stalls.
The new owners plan to reposition the property with new interior upgrades, mechanicals, increased parking and loading capabilities to cater to advanced manufacturing tenants looking for a Bay Area, Class A solution to their manufacturing needs. It was delivered vacant.
Scott Prosser, Joe Moriarty, Jack DePuy, Rebecca Perlmutter, Brian Matteoni and Chip Sutherland of CBRE represented both parties in the sale transaction. Brian Matteoni and Chip Sutherland will be retained by the new ownership as the leasing brokers for the property. Mike Walker and Brad Zampa, also with CBRE, represented the buyer in securing a $39.5 mil three-year, non-recourse, floating-rate balance sheet loan with two extension options through the San Francisco office of a money center bank.
Silicon Valley is one of the tightest industrial markets in the nation with a 2.4% vacancy rate, according to CBRE. New construction in Silicon Valley has been 95% pre-leased, with no ground-up industrial building deliveries planned in the market for 2022.
“Newer, Class A Industrial developments in Morgan Hill, including 755 Jarvis Drive, are attracting occupiers who want to grow their footprint in Silicon Valley as available land becomes increasingly limited. As a result, industrial properties of this size are rarely on the market for long and highly sought after for its proximity to Silicon Valley talent,” said Prosse.
Including the acquisition of 755 Jarvis, Ridge Capital Investors has made five Bay Area acquisitions in the last eight months, totaling over $230 mil.
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