JER and TMG used the financing to acquire an unstabilized 1.03-million-sf industrial portfolio here from Sunnyvale-based Renco Properties. "The B note portion of the financing…was especially appealing to us because it meets our criteria for the higher rate of return that we anticipate by assuming the greater risk of the B piece of the loan," says PCCP managing director Bryan Thornton.

The acquired portfolio consists of 16 one- and two-story buildings built in the 1990s within the 200-acre master-planned Bayside Technology Park, which includes office retail and hospitality uses. The acquired industrial portfolio is roughly 60% leased with tenants that include Boston Scientific, Cirrus Logic, VA Linux Systems and Oryx Instruments.

TMG and JER paid an estimated $128 million for the portfolio. TMG chief executive Michael Covarrubias told GlobeSt.com at the time of the acquisition that his plan is to flip the fully leased buildings to investors in order to lower its cost basis and then lease up and sell off the remainder. The pro forma hold is three to five years, he says, but things likely will happen more quickly than that.