(Read more on the industrial market.)

SANTA CLARA, CA-Bixby Land Co., an Irvine-based private REIT,has sold a 300,000-sf R&D park here in a new joint venture ithas formed with the Los Angeles-based real estate investment groupof Investcorp International Ltd., which is traded on the London andBahrain stock exchanges. The duo says the new partnership will lookto acquire additional office and R&D properties in the SiliconValley.

In explaining the JV, Brian Kelley, a principal withInvestcorp's real estate group says the Silicon Valley has enjoyed11 consecutive quarters of declining vacancy rates and sevenconsecutive quarters of increasing rental rates. "The SiliconValley is becoming a supply constrained market as the increasingdemand for quality office and R&D buildings and limited newconstruction force upward pressure on rental rates," adds Bixby CEOBill Halford.