Garden-Style Office Park Trades Hands
By Brian K. Miller

Last updated: February 6, 2005 07:54pm

SAN JOSE, CA-The West Valley Office park here has changed hands for $18.6 million. Working with the Philadelphia-based private equity firm Lubert-Adler, ATC Partners of San Francisco recently paid IRP Muller Pacific Properties LLC $18.6 million for the 126,000-sf garden-style office development on the west side of San Jose.

ATC principal Tom Keane tells GlobeSt.com the four-building complex caters to small businesses. Vacancy is about 30%. There are currently about 50 tenants in the building, and room for another 30. ATC used to focus on larger office and industrial buildings, but now it focuses entirely on garden-style offices with small tenants.

"That's our spot; we scour the market for these types of buildings, with small tenants and some vacancy, because we feel we have the expertise to get them fixed up and leased up," says Keane. "We'll generally try to put in conference rooms, kitchenettes if they don't have them."

The West Valley Executive Park is located at 4010-4040 Moorpark Avenue, one block from Saratoga Avenue. The full service asking rate is $1.85 per sf per month. Keane says the 10-year IRR goal is "in the teens."

“We strongly believe in the long-term value of this small business building,” adds Mike Halper, ATC managing partner. “It’s a great location with convenient freeway access from Highway 280 and nearby retail amenities.”

Mark Ziemendorf and Patty Steele of Cornish & Carey represented IRP Muller Pacific Properties LLC in the transaction. ATC was represented in-house by Halper. ATC also owns and operates the San Bruno Office Park (55, 000 sf/50 tenants), 330 Townsend Street in San Francisco and 1333 Broadway in Oakland. [MORE]

Found at GlobeSt.com: